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CA Final · Indirect Tax Laws · Refund

Kiran Traders imported 500 machine parts and paid import duty on clearance for home consumption. On inspection, the parts were found not to conform to the specifications agreed with the foreign supplier. The goods are unused and identifiable, and the importer will not claim drawback. The order for clearance under section 47 was made on 10 March. Under section 26A, within what period must the goods be exported, abandoned or destroyed, without any extension?

The goods must be exported, abandoned to customs or destroyed within thirty days from 10 March, the date of the section 47 clearance order. Section 26A(1)(d) sets this limit, and only the Commissioner can extend it, for up to three months, on sufficient cause.

  1. ASixty days from 10 March
  2. BThirty days from 10 MarchCorrect
  3. CSix months from 10 March
  4. DThree months from 10 March

Explanation

Section 26A(1)(d) requires export, relinquishment and abandonment to customs, or destruction in the presence of the proper officer within a period not exceeding thirty days from the clearance order date under section 47. Extension is possible only on sufficient cause, by the Commissioner for up to three months, and none is assumed here. Six months is the period for filing the refund application, not for completing disposal.

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