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CMA Final · Indirect Tax Laws and Practice · Duty Drawback

Sharma Ltd imported goods and the duty was provisionally assessed under Section 18. Provisional duty was paid on 5 June 2024 and final assessment was completed on 20 November 2024. For the two-year limit under Section 74 for entering the goods for export, from which date does the period run?

The two-year period runs from 5 June 2024, the date of payment of provisional duty. Section 74(4)(b) deems that date to be the date of payment of duty for goods assessed provisionally under Section 18, not the date of final assessment.

  1. A5 June 2024, the date of payment of provisional dutyCorrect
  2. B20 November 2024, the date of final assessment
  3. CThe date of arrival of the goods in India
  4. DThe date of the final payment of differential duty, if any

Explanation

Section 74(4)(b) deems the date of payment of provisional duty to be the date of payment of duty for goods provisionally assessed. So the two years run from 5 June 2024. Final assessment date is a tempting but wrong base.

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