Customs Act, 1962 — Chapter V: Levy of, and Exemption from, Customs Duties
26A. Refund of import duty in certain cases
- Where duty was paid on clearance for home consumption of easily identifiable imported goods, it shall be refunded if: (a) the goods are defective or not conforming to agreed specifications (proviso: not if worked, repaired or used, except where indispensable to discover the defect); (b) the goods are identified to the Assistant/Deputy Commissioner’s satisfaction as the goods imported; (c) the importer does not claim drawback under any other provision; and (d) the goods are exported, or title is relinquished and the goods abandoned to customs, or the goods are destroyed/rendered valueless in the proper officer’s presence — in each case within thirty days of the clearance order (extendable up to three months by the Principal Commissioner/Commissioner for sufficient cause). Proviso: does not apply where an offence appears to have been committed.
- An application for refund must be made within six months of the relevant date, in the prescribed form and manner. Explanation: “relevant date” means the date of the export clearance order, the date of relinquishment, or the date of destruction/rendering valueless, as applicable.
- No refund is allowed for perishable goods or goods that have exceeded their shelf life or recommended storage period.
- The Board may, by notification, specify further conditions for the refund.
