ABC Pvt. Ltd. exported a consignment of goods to M/s George, located in France in January, 2024 and paid applicable export duty. Due to quality…

CA Final · Indirect Tax Laws · RTP · September 2025
ABC Pvt. Ltd. exported a consignment of goods to M/s George, located in France in January, 2024 and paid applicable export duty. Due to quality issues, M/s George rejected the goods, and they were returned to ABC Pvt. Ltd. in October, 2024 without any resale involved. The proper officer passed the clearance order for the returned goods on 15 th October, 2024. ABC Pvt. Ltd. applied for a refund of the export duty on 10 th May, 2025. Is ABC Pvt. Ltd. eligible for the refund of export duty under section 26 of the Customs Act, 1962?
(A) Yes, because the goods were returned within one year of export and not resold.
(B) No, because the refund application was filed beyond the time limit prescribed under section 26 of the Customs Act, 1962.
(C) Yes, because the refund application was filed within one year of re-import.
(D) No, because goods once exported are not eligible for duty refund under any circumstance.

Suggested Answer and Working Notes:

Correct Answer: Option (B)

No, because the refund application was filed beyond the time limit prescribed under section 26 of the Customs Act, 1962.

Topics: Customs: Refund

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