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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 are returned to the exporter otherwise than by re-sale. Which additional pair of conditions must be met?

Export duty is refunded under section 26 only if the goods return otherwise than by re-sale, are re-imported within one year of exportation, and the refund application is made within six months from the date the proper officer orders their clearance.

  1. ARe-import within one year from the date of exportation, and refund application within six months from the date the proper officer orders clearance of the goodsCorrect
  2. BRe-import within six months from the date of exportation, and refund application within one year from the date of the clearance order
  3. CRe-import within two years from the date of exportation, and refund application within three months from the date of the clearance order
  4. DRe-import within one year from the date of exportation, and refund application within one year from the date of the clearance order

Explanation

Section 26 requires re-importation within one year from the date of exportation and an application before the expiry of six months from the date the proper officer orders clearance of the goods. The other options swap or alter these periods.

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