CA Final · Indirect Tax Laws · Refund
Vardhan Exports Pvt Ltd exported machine parts from Chennai and paid export duty on them. The foreign buyer returned the goods unsold, and the goods were re-imported into India 10 months after the date of exportation. They were not re-sold to the exporter. The proper officer made the order for clearance of the goods on a given date. Under the Customs Act, 1962, what is the time limit for applying for refund of the export duty?
The refund application must be made within six months from the date on which the proper officer makes the order for clearance of the re-imported goods. The one-year limit applies only to re-importation after exportation, which was met here at ten months. It is not the application deadline.
- AWithin six months from the date on which the proper officer makes an order for the clearance of the goodsCorrect
- BWithin one year from the date of exportation
- CWithin three months from the date of re-importation
- DWithin thirty days from the date of the order for clearance
Explanation
Section 26 allows refund of export duty if the goods are returned otherwise than by re-sale, are re-imported within one year of exportation, and the refund application is made within six months from the date of the proper officer's order for clearance. Here re-import at 10 months satisfies the one-year condition. The one-year period in option B is a condition for re-importation, not the deadline for the refund application.
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