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

A CBIC circular directs customs officers to classify a class of electronic components under one particular tariff heading to ensure uniform classification across ports. Which statement is correct under section 151A of the Customs Act, 1962?

The Board may issue general instructions for uniform classification, and officers must follow them, but it cannot require an officer to make a particular assessment or dispose of a particular case in a particular way, nor interfere with the Commissioner (Appeals)'s appellate discretion.

  1. AThe Board can issue such instructions, and officers must follow them, but it cannot direct an officer to make a particular assessment in a particular caseCorrect
  2. BThe Board can direct an assessing officer to assess a named importer's pending bill of entry in a specified manner
  3. CThe Board's instructions can bind the Commissioner (Appeals) in deciding an appeal on classification
  4. DThe Board may issue instructions only on valuation and not on classification

Explanation

Section 151A empowers the Board to issue orders, instructions and directions for uniformity in classification or levy of duty, and officers must follow them. The proviso bars directions requiring an officer to make a particular assessment or dispose of a particular case in a particular manner, and bars interference with the discretion of the Commissioner (Appeals). So the other statements conflict with the proviso or the text.

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