CMA Final · Indirect Tax Laws and Practice · Refund
Under section 26 of the Customs Act, 1962, export duty paid on goods is refundable if the goods come back to the exporter. Which of the following sets of conditions must be satisfied?
Export duty is refunded only if the goods return to the exporter other than by re-sale, are re-imported within one year of exportation, and the refund application is filed within six months from the date of the proper officer's order for clearance of the goods.
- AGoods returned otherwise than by way of re-sale; re-imported within one year from the date of exportation; refund application made within six months from the date of the order for clearance of the goodsCorrect
- BGoods returned by way of re-sale; re-imported within two years; application within one year from the date of exportation
- CGoods returned otherwise than by way of re-sale; re-imported within six months; application within one year from the order for clearance
- DGoods re-imported within one year; application within three months from the date of payment of export duty
Explanation
Section 26 requires three conditions together: the goods are returned to the person otherwise than by re-sale, they are re-imported within one year from the date of exportation, and the refund application is made before six months expire from the date of the proper officer's order for clearance. The other options alter these periods or allow re-sale.
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