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CMA Final · Indirect Tax Laws and Practice · Refund

Sundaram Pharma imported a consignment of goods and paid duty. The goods were defective, but the recommended storage-before-use period of the goods had already been exceeded. All other conditions of section 26A(1) are satisfied. What is the position on refund?

Refund is not allowed. Section 26A(3) bars refund for perishable goods and goods that have exceeded their shelf life or recommended storage-before-use period, regardless of other conditions being met. A Commissioner's extension of the thirty-day period does not remove this bar.

  1. ARefund is not allowed because goods which have exceeded their shelf life or recommended storage-before-use period are excludedCorrect
  2. BRefund is allowed if the importer exports the goods within thirty days
  3. CRefund is allowed if the Commissioner extends the period by three months
  4. DRefund is allowed only for half of the duty paid

Explanation

Section 26A(3) states that no refund under sub-section (1) shall be allowed for perishable goods and goods that have exceeded their shelf life or recommended storage-before-use period. The extension of time by the Commissioner only relates to the thirty-day period and cannot cure this bar.

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