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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 notifies that duty need not be recovered for goods because of a generally prevalent practice of non-levy. Rahul Exports had paid duty of Rs 80,000 on such goods before the notification, which would not have been paid had the notification been in force. By when must Rahul apply for refund, as per the proviso to section 28A(2)?

Rahul must apply before six months expire from the date of issue of the notification. The proviso to section 28A(2) fixes the period from the notification date, not the date of payment of duty, and the application goes in the prescribed form to the Assistant or Deputy Commissioner.

  1. ABefore the expiry of six months from the date of issue of the notificationCorrect
  2. BWithin one year from the date of payment of duty
  3. CWithin three months from the date of issue of the notification
  4. DWithin six months from the date of payment of duty

Explanation

Section 28A(2) treats such refund under section 27(2) provided the application is made to the Assistant or Deputy Commissioner in the form under section 27(1) before six months expire from the date of issue of the notification. The period runs from the notification, not from payment.

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