CMA Final · Indirect Tax Laws and Practice · Refund
Ravi Traders imported defective goods and the Assistant Commissioner cleared them for home consumption under section 47 on 1 June. Ravi wants a section 26A refund by destroying the goods. The destruction must be completed within thirty days of the clearance order. For which of the following can that period be extended, and by how much?
The thirty-day period can be extended by the Principal Commissioner or Commissioner of Customs, but only if sufficient cause is shown, and for a period not exceeding three months. Neither the Board nor the Assistant Commissioner has this power, and it is not available without cause.
- ABy the Board, for up to six months, without any cause
- BBy the Principal Commissioner or Commissioner of Customs, on sufficient cause shown, for a period not exceeding three monthsCorrect
- CBy the Assistant Commissioner, for any period he thinks fit
- DIt cannot be extended in any circumstances
Explanation
The first proviso to section 26A(1) allows the Principal Commissioner or Commissioner of Customs to extend the thirty-day period on sufficient cause for a period not exceeding three months. The Board and the Assistant Commissioner have no such power, and the extension is not unconditional.
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