CMA Final · Indirect Tax Laws and Practice · Refund
Under section 26A of the Customs Act, 1962, which of the following importers would be eligible for refund of import duty, assuming all other conditions are satisfied?
The importer of identifiable non-conforming machinery, used only as indispensable to discover the non-conformity and exported in time, qualifies. Perishable or expired goods, drawback claimants, and goods involving an apparent offence are excluded under section 26A.
- AImporter of fresh fruit that exceeded shelf life, which was destroyed before the proper officer
- BImporter of electronic components found non-conforming, who also claims drawback under another provision
- CImporter of goods where an offence under the Act appears to have been committed
- DImporter of identifiable machinery found non-conforming, used only as indispensable to discover the non-conformity, then exported in timeCorrect
Explanation
Section 26A allows refund where goods are identifiable, defective or non-conforming, not worked, repaired or used except where use was indispensable to discover defects, no drawback is claimed, and they are exported, abandoned or destroyed in time. Perishable or shelf-life-exceeded goods, drawback claimants and goods involving an offence are excluded.
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