Position of exports - LUT

[Asked by Guest]

By oversight a period of 3 months not covered by LUT. What is the position for the exports made during the period, If SCN given for duty demand. Submission of proof of export will be enough to overcome the demand

[Surender Gupta]

Once you failed to comply with the prescribed procedure, you may paid duty with interest now and claim rebate against export. Unless there are other better proposition available, the above suggested steps to be followed.

AI Summary

Non-compliance with Letter of Undertaking may require payment of duty with interest and subsequent claim for rebate.
Failure to operate under a Letter of Undertaking (LUT) for a period exposes exports in that period to duty demands; the practical response is to pay the duty with interest, submit proof of export, and thereafter claim a rebate against export, unless a better legal or factual alternative exists.