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CA Final · Indirect Tax Laws · Refund

Ravi Foods imported a consignment of packaged dairy spreads and paid duty. The goods were found non-conforming to agreed specifications. By the time Ravi sought to export them, the goods had exceeded their shelf life. All other conditions were met. What is the position on refund under section 26A?

Refund is not allowed. Section 26A(3) bars refund for perishable goods and goods that have exceeded their shelf life or recommended storage period, and neither timely export nor an extension of the 30-day period cures this exclusion.

  1. ARefund is allowed if exported within 30 days
  2. BRefund is not allowed because goods that have exceeded shelf life are excludedCorrect
  3. CRefund is allowed if the Commissioner extends the 30-day period
  4. DRefund is allowed only for half the duty paid

Explanation

Section 26A(3) states that no refund is allowed for perishable goods and goods which have exceeded their shelf life or recommended storage-before-use period. The 30-day extension power does not override this bar, so option on extension is wrong. The statute has no half-duty refund concept.

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