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CA Final · Indirect Tax Laws · Import and Export Under GST

Orion Chemicals exported goods under LUT, did not export within the time in Rule 96A(1), and did not pay the amount. Which consequence follows under Rule 96A(3) and (4)?

On failure to export in time and pay the amount, the LUT export facility is withdrawn forthwith and the amount is recovered under section 79. It is restored immediately once the registered person pays the amount due.

  1. AExport under LUT is withdrawn forthwith and the amount recovered under section 79; it is restored immediately on payment of the amount dueCorrect
  2. BExport under LUT is withdrawn permanently and cannot be restored
  3. COnly a penalty is levied and the LUT facility continues
  4. DThe LUT is withdrawn only after a show cause notice under section 73 is finalised

Explanation

Rule 96A(3) provides that the facility is withdrawn forthwith and the amount recovered under section 79. Rule 96A(4) provides for restoration immediately when the amount due is paid. Hence permanent withdrawal is wrong.

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