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CMA Final · Indirect Tax Laws and Practice · Remission of Duties

Under section 28A of the Customs Act, 1962, a generally prevalent practice of non-levy of duty on certain goods is found. After the Central Government issues a notification under that section, an importer who had paid the duty wishes to claim a refund. What is the condition?

The importer must apply to the Assistant or Deputy Commissioner in the form referred to in section 27(1) before six months expire from the date the notification under section 28A is issued. Refund is not automatic and is not tied to the payment date.

  1. AHe must apply to the Assistant or Deputy Commissioner in the section 27 form within six months from the date of issue of the notificationCorrect
  2. BHe must apply within one year from the date of payment of duty
  3. CHe may claim refund automatically without any application
  4. DHe must apply within thirty days of receiving a show cause notice

Explanation

Section 28A(2) treats such refunds under section 27(2), with the proviso requiring an application in the section 27 form to the Assistant or Deputy Commissioner before the expiry of six months from the date of issue of the notification. No automatic refund is provided.

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