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CA Final · Indirect Tax Laws · Classification of Imported and Export Goods

Ravi Traders imported goods and paid provisional duty on 1 August 2024 under provisional assessment; final assessment followed later. For computing the two-year period for entering the goods for export for drawback, which date is treated as the date of payment of duty?

The date of payment of the provisional duty is deemed to be the date of payment of duty. Hence the two-year period for entering goods for export to claim drawback is counted from 1 August 2024, not from final assessment or any later differential payment.

  1. AThe date of final assessment
  2. BThe date of payment of the provisional dutyCorrect
  3. CThe date of arrival of the vessel
  4. DThe date on which the differential duty was paid after final assessment

Explanation

Section 74(4)(b) says that for goods provisionally assessed, the date of payment of the provisional duty is deemed the date of payment of duty. So the period runs from 1 August 2024, not from final assessment or any later payment of differential duty.

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