CA Final · Indirect Tax Laws · Levy of and Exemptions from Customs Duty
A Board circular under section 151A directs officers to classify a certain imported component under one tariff heading for uniformity. Aman, an Assistant Commissioner, is told in the same circular to assess Zenith Ltd's pending bill of entry in a specific manner favouring a particular outcome. Which statement is correct?
The general direction on uniform classification is valid, but the Board cannot require an officer to make a particular assessment or dispose of a particular case in a particular manner. Section 151A's proviso bars such case-specific directions and also bars interference with the Commissioner (Appeals)'s appellate discretion.
- AThe direction is valid, because officers must follow all Board instructions
- BThe general direction on uniform classification is valid, but the Board cannot require an officer to make a particular assessment or dispose of a particular case in a particular mannerCorrect
- CThe Board may also direct the Commissioner (Appeals) how to decide Zenith's appeal
- DThe Board can issue instructions only on valuation and not on classification
Explanation
Section 151A lets the Board issue orders for uniformity in classification or levy of duty, which officers must follow. Its proviso bars instructions requiring an officer to make a particular assessment or dispose of a particular case in a particular manner, and bars interference with the Commissioner (Appeals)'s discretion. So the case-specific direction is invalid.
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