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CMA Final · Indirect Tax Laws and Practice · Refund

Under the Customs Act, 1962, a exporter paid export duty on goods that were later returned to him other than by way of re-sale. The goods were re-imported within one year of exportation. Within what time must the refund application be made under section 26?

The refund application must be made before six months expire from the date on which the proper officer orders clearance of the re-imported goods. The one-year limit applies only to re-importation after export, not to filing the refund claim.

  1. AWithin six months from the date on which the proper officer makes an order for clearance of the goodsCorrect
  2. BWithin one year from the date of exportation
  3. CWithin thirty days from the date of re-importation
  4. DWithin three months from the date of payment of export duty

Explanation

Section 26 requires the application to be made before expiry of six months from the date on which the proper officer makes an order for clearance of the re-imported goods. The one-year period is for re-importation, not for filing the application, so the option citing one year from exportation confuses the two conditions.

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