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CA Final · Indirect Tax Laws · Miscellaneous Provisions (GST)

Mehta Appliances, Surat, sold goods before the appointed day on which excise duty was paid at the time of removal, four months before the appointed day. After the appointed day, a retail consumer (an unregistered person) returned the goods to Mehta's place of business 5 months after the appointed day. The goods are identifiable to the satisfaction of the proper officer. Under the transitional provisions on returned goods, what is the position?

Mehta is eligible for a refund of the duty paid under the existing law. The goods were removed within six months before the appointed day, returned by an unregistered person within six months after it, and are identifiable. Deemed supply applies only if a registered person returns them.

  1. AMehta is eligible for refund of the duty paid under the existing law, since the goods were returned by a non-registered person within six months from the appointed dayCorrect
  2. BMehta is not eligible for refund, since the goods were returned after the appointed day
  3. CMehta must treat the return as a taxable supply under GST
  4. DMehta is eligible for refund only if the goods were removed within one month before the appointed day

Explanation

The goods were removed not earlier than six months before the appointed day (four months). They were returned by a person other than a registered person within six months from the appointed day (five months) and are identifiable. So refund of duty paid under the existing law is allowed. The deemed-supply rule applies only when a registered person returns the goods.

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