11BRefunds of tax on rejected goods

11B Refunds of tax on rejected goods

Where: (a) sales tax has been paid in respect of goods that have been imported and entered for home consumption in pursuance of a contract of sale; (b) the importer refuses or fails to accept the goods under the contract on the ground that they are not in accordance with the terms of the contract; (c) the goods are destroyed under the supervision of a Collector; and (d) the Commissioner is satisfied: (i) where customs duty has been paid or is payable on the goods—that that duty has been, or will be, refunded or remitted by reason of the destruction of the goods; or (ii) where no customs duty was payable upon the entry of the goods for home consumption that, if customs duty had been paid on the entry of the goods for home consumption, that duty would have been refunded by reason of the destruction of the goods; and that the sales tax paid in respect of the goods has not been passed on by the taxpayer to some other person or, if passed on to some other person, has been refunded to that person; the Commissioner may refund the sales tax so paid.