CMA Final · Indirect Tax Laws and Practice · Refund
Sunrise Textiles Ltd imported machinery and cleared it for home consumption. On 10 March the proper officer ordered clearance under section 47. The machinery was found non-conforming with agreed specifications. Sunrise wants a refund under section 26A. What is the normal outer time limit for exporting, abandoning or destroying the goods, and the maximum extension on sufficient cause?
The goods must be exported, abandoned to customs or destroyed within thirty days of the section 47 clearance order. On sufficient cause, the Principal Commissioner or Commissioner can extend this by up to three months. The six-month period relates to filing the refund application.
- A30 days from the clearance order; extendable by the Principal Commissioner or Commissioner for up to 3 monthsCorrect
- B60 days from the clearance order; extendable by the Assistant Commissioner for up to 3 months
- C30 days from the clearance order; extendable by the Principal Commissioner or Commissioner for up to 6 months
- D15 days from the clearance order; extendable by the Board for up to 1 month
Explanation
Section 26A(1) requires export, relinquishment or destruction within a period not exceeding thirty days from the clearance order under section 47. On sufficient cause, the Principal Commissioner or Commissioner may extend it by a period not exceeding three months. The 6-month figure applies to the refund application period, not the extension.
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