CA Final · Indirect Tax Laws · Refund
Mahesh Foods imported a consignment and paid duty. Part A consists of packaged biscuits that were non-conforming but were past their recommended shelf life when identified. Part B is machinery that is non-conforming, identifiable and unused, and is being exported within the permitted time. Part C is non-conforming electronic goods, identifiable, but on which the importer has also claimed drawback under another provision. Under section 26A, refund is allowable for:
Refund is allowable for Part B only. Section 26A denies refund on goods that have exceeded shelf life, which rules out Part A, and requires that no drawback be claimed under another provision, which rules out Part C. Part B satisfies all the conditions.
- APart B onlyCorrect
- BParts A and B only
- CParts B and C only
- DParts A, B and C
Explanation
Section 26A(3) bars refund for perishable goods and goods that have exceeded their shelf life, so Part A fails. Section 26A(1)(c) requires that the importer does not claim drawback under any other provision, so Part C fails. Part B meets the non-conformity, identification, non-use and export conditions, so only it qualifies.
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