CMA Final · Indirect Tax Laws and Practice · Duty Drawback
Mehta Traders imported a machine and paid customs duty on 10 March 2025. Which is the latest period within which the goods must be entered for export to qualify for drawback under Section 74(1), without any extension?
The goods must be entered for export within two years from the date of payment of duty on importation. For Mehta Traders, the period runs from 10 March 2025. The Board may extend it on sufficient cause being shown, but without extension two years applies.
- ASix months from the date of payment of duty
- BOne year from the date of the bill of entry
- CTwo years from the date of payment of dutyCorrect
- DThree years from the date of arrival of the vessel
Explanation
Section 74(1)(b) requires the goods to be entered for export within two years from the date of payment of duty on importation. The period runs from payment of duty, not from bill of entry or arrival.
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