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CMA Final · Indirect Tax Laws and Practice · Refund

Sharma Traders imported machine parts and paid duty on clearance for home consumption. The order for clearance under section 47 was made on 1 March. The parts were found not conforming to the agreed specifications, unused. Under section 26A, within what period must the importer export, abandon or destroy them, without any extension?

The goods must be exported, abandoned to customs or destroyed within thirty days from the date on which the proper officer orders clearance for home consumption under section 47, extendable only for sufficient cause by up to three months.

  1. ASixty days from the date of the clearance order
  2. BThirty days from the date of the clearance orderCorrect
  3. CSix months from the date of the clearance order
  4. DThirty days from the date of payment of duty

Explanation

Section 26A(1)(d) requires export, relinquishment/abandonment or destruction within a period not exceeding thirty days from the date of the clearance order under section 47. Extension is possible only on sufficient cause, up to three months. Six months is the refund application period, not this one.

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