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

Under section 28A of the Customs Act, 1962, the Central Government finds a generally prevalent practice of not levying duty on certain goods although they were liable to duty. After it issues a notification under section 28A(1), what is the time limit for a person who paid such duty to apply for refund under section 28A(2)?

The application must be made within six months from the date of issue of the notification. Section 28A(2) proviso requires it in the form referred to in section 27(1), to the Assistant or Deputy Commissioner, and the refund is then dealt with under section 27(2).

  1. AWithin one year from the date of payment of duty
  2. BWithin six months from the date of issue of the notificationCorrect
  3. CWithin three months from the date of the order of the Central Government
  4. DWithin thirty days from the date of the notification

Explanation

The proviso to section 28A(2) requires the person claiming refund of duty paid, which would not have been paid had the notification been in force, to apply in the section 27(1) form before the expiry of six months from the date of issue of the notification. The refund is then dealt with under section 27(2).

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