CMA Final · Indirect Tax Laws and Practice · Refund
Under section 26A of the Customs Act, 1962, which of the following importers is NOT entitled to a refund of import duty?
The importer of perishable goods is not entitled to refund, because section 26A(3) disallows refund on perishable goods and goods past shelf life, even if they are non-conforming and exported within thirty days.
- AAn importer whose defective, identifiable goods were destroyed in the presence of the proper officer within the permitted period
- BAn importer who abandoned defective goods to customs by relinquishing title within the permitted period
- CAn importer of non-conforming perishable goods who exported them within thirty daysCorrect
- DAn importer whose goods, not conforming to specifications, were used only as indispensable to discover the defect, and then exported in time
Explanation
Section 26A(3) bars refund for perishable goods and goods beyond shelf life or recommended storage-before-use period. Destruction, abandonment and export are valid routes, and use indispensable to discover defects is permitted by the proviso.
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