CA Final · Indirect Tax Laws · Refund
Meera Pharma imported a batch of defective vials and paid duty. The proper officer ordered clearance for home consumption under section 47 on 1 March. Meera wants a refund under section 26A and chooses to destroy the goods in the presence of the proper officer. The goods are not perishable and are within shelf life. Destruction cannot be completed by 31 March because of a plant shutdown, but sufficient cause is shown. What is the maximum extension that can be granted and by whom?
The thirty-day period can be extended by the Principal Commissioner or Commissioner of Customs for up to three months, provided sufficient cause is shown. Lower officers such as Assistant or Deputy Commissioners cannot grant this extension, and the Board's role under section 26A is limited to prescribing other conditions.
- AUp to three months by the Principal Commissioner or Commissioner of CustomsCorrect
- BUp to one month by the Assistant Commissioner
- CUp to six months by the Board
- DUp to three months by the Deputy Commissioner of Customs
Explanation
Section 26A(1) requires the export, abandonment or destruction within 30 days of the section 47 order. On sufficient cause, the Principal Commissioner or Commissioner of Customs may extend this by a period not exceeding three months. Options B and D name the wrong authority, and option C names the Board, which only specifies further conditions under sub-section (4).
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