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

Rohit Gems Ltd received a refund of Rs 8,00,000 on exports. Sale proceeds were not realised within the FEMA period, and the refund was recovered from Rohit Gems under Rule 96B(1) with interest. Three months later the buyer paid the full proceeds, within the extended period permitted by RBI. Rohit Gems produced evidence of realisation within two months of the date of realisation. What is the position under Rule 96B(2)?

The proper officer refunds the recovered amount to the extent of realisation. Rule 96B(2) permits this where evidence of realisation is produced within three months of realisation and the proceeds came in within the extended period permitted by the Reserve Bank of India, both of which are satisfied.

  1. AThe recovered amount is refunded by the proper officer to the extent of realisation of sale proceedsCorrect
  2. BNo refund is possible, as recovery under sub-rule (1) is final
  3. CThe recovered amount is refunded only if RBI writes off the requirement
  4. DThe recovered amount is refunded only if evidence is produced within thirty days of realisation

Explanation

Rule 96B(2) lets the applicant get back the recovered amount to the extent of realisation if evidence is produced within three months of realisation and realisation occurred within the extended period permitted by RBI. Both conditions are met here. The thirty-day limit in option D applies to the deposit under sub-rule (1), not to this claim.

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