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CA Final · Indirect Tax Laws · Refund

Meera Imports cleared defective machinery for home consumption on an order dated 1 March. Sufficient cause prevented her from exporting the machinery within 30 days. The Principal Commissioner of Customs extended the period to the maximum allowed. Meera exported the goods and the proper officer's order permitting clearance and loading for export under section 51 was made on 25 June. Which statement is correct?

Export on 25 June is in time because the 30-day period can be extended by up to three months for sufficient cause. The refund application must be made within six months from 25 June, the date of the section 51 order.

  1. AMaximum extension is three months, so export by 25 June was allowed in time, and the application is due within six months of 25 JuneCorrect
  2. BMaximum extension is three months, so 25 June exceeds the permissible period and refund fails
  3. CThe extension can be only up to 15 days, so refund fails
  4. DApplication must be made within six months from 1 March

Explanation

The basic 30 days run from the clearance order of 1 March to 31 March. The extension can be up to three months, which as a maximum takes the period to about 30 June, so 25 June is within time. The relevant date for export is the section 51 order date, 25 June, and the application is due within six months from it, not from 1 March.

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