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CA Final · Indirect Tax Laws · Levy of and Exemptions from Customs Duty

A Board circular under section 151A directs officers that a particular category of imported machine parts must be classified under one specified tariff heading for uniformity. A second paragraph of the same circular directs the Assistant Commissioner to assess Zenith Ltd's pending bill of entry at a particular rate. Which statement is correct?

The classification direction is valid but the case-specific direction is not. Section 151A allows the Board to issue instructions for uniformity in classification and levy of duty, but its proviso forbids requiring an officer to make a particular assessment or dispose of a particular case in a particular manner.

  1. ABoth directions bind the officer, since the Board has full control over officers
  2. BNeither direction is valid, because the Board cannot issue instructions on classification
  3. CThe first direction is permissible for uniformity in classification, but the second is barred because the Board cannot require an officer to make a particular assessmentCorrect
  4. DThe first direction is barred, but the second is permissible as it concerns one case

Explanation

Section 151A allows the Board to issue orders for uniformity in classification or levy of duty. The proviso (a) bars instructions requiring an officer to make a particular assessment or dispose of a particular case in a particular manner. So only the general classification direction is valid.

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