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

Under Rule 96B, Zenith Exports received a refund of unutilised ITC on export of goods. Proceeds were not realised within the FEMA period and the amount was recovered from it under Rule 96B(1). Later, Zenith realised the proceeds on 20 June, within the extended period permitted by RBI. Which statement is correct?

Under Rule 96B(2), the recovered amount is refunded to the extent of realisation if the exporter produces evidence within three months from the date of realisation and the proceeds were realised within the extended period permitted by RBI.

  1. AIt can get the recovered amount refunded, to the extent of realisation, if it produces evidence within three months from the date of realisationCorrect
  2. BIt can get the refund only if evidence is produced within thirty days of realisation
  3. CNo refund is possible once the amount is recovered
  4. DThe refund is allowed only if RBI has written off the requirement

Explanation

Rule 96B(2) lets the proper officer refund the recovered amount to the extent of realisation if evidence is produced within three months of realisation and realisation was within the RBI-permitted extended period. Thirty days is the deposit period in sub-rule (1), not the evidence period. Write-off is a separate proviso that prevents recovery.

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