TaxTMI 
TaxTMI 
If a manufacturer exporter fails to renew his LUT for 3 months. But he exports goods during the lapse period. He renews the LUT after 3 months. IS there any consequences for the exports made during the particular 3 months ( where the LUT is not convered those 3 months)
Consequences - export during lapse period
25 May 2009 
3 Replies 
6354 Views Asked by
Guest 
Failure to renew LUT may invite duty and penalty, but timely submission of proof of export can avert a demand.
Non-furnishing or lapse of a bond or LUT is an essential condition for duty-free removal of goods and can give rise to duty and penalty; however, where the exporter submits satisfactory proof of export (attested shipping bills, bill of lading, foreign exchange remittance evidence) within the prescribed period, revenue demands for non-furnishing may not be sustained and tribunals may condone the lapse. (AI Summary)
Non-furnishing or lapse of a bond or LUT is an essential condition for duty-free removal of goods and can give rise to duty and penalty; however, where the exporter submits satisfactory proof of export (attested shipping bills, bill of lading, foreign exchange remittance evidence) within the prescribed period, revenue demands for non-furnishing may not be sustained and tribunals may condone the lapse. (AI Summary)