Extension for export proceeds filing after the statutory period remained maintainable; rejection solely for delay was set aside.

An application for extension of time to bring export proceeds into India under section 80HHC(2)(a) was stated to remain maintainable even if filed after expiry of the six-month statutory period, because the Supreme Court had already upheld post-period applications as valid. On that basis, the Commissioner's refusal to entertain the request solely for lateness could not stand, and the rejection order was set aside. The matter was directed to be reconsidered afresh in accordance with law and in light of the Supreme Court ruling.

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Issues: Whether an application for extension of time to bring export proceeds into India, made after expiry of the statutory period under section 80HHC(2)(a), was maintainable and whether the rejection order was liable to be set aside.

Analysis: The statutory scheme under section 80HHC(2)(a) permits realization of sale proceeds within six months from the end of the previous year or within such further period as the Commissioner may allow. The Supreme Court had already held that applications for extension made after expiry of the prescribed period were maintainable and valid. In that view, the Commissioner's refusal to entertain the application solely because it was filed after the six-month period could not stand.

Conclusion: The rejection order was set aside and the application was directed to be decided afresh in accordance with law and in the light of the Supreme Court decision.

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