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CA Final · Indirect Tax Laws · Importation and Exportation of Goods

Anand Ltd paid provisional duty on imported goods on 1 June 2023 under provisional assessment (section 18). Final assessment was completed on 1 December 2023 with a differential payment. The goods are to be exported under section 74. From which date is the two-year period for entering the goods for export counted?

The period runs from 1 June 2023. Section 74(4)(b) provides that for goods provisionally assessed under section 18, the date of payment of the provisional duty is deemed to be the date of payment of duty, so the two-year window under section 74(1)(b) starts then.

  1. A1 December 2023, the date of final assessment
  2. B1 June 2023, the date of payment of provisional dutyCorrect
  3. CThe date of arrival of the goods in India
  4. DThe date of payment of the differential duty after final assessment

Explanation

Section 74(4)(b) deems the date of payment of provisional duty to be the date of payment of duty for goods assessed provisionally. The two-year period under section 74(1)(b) therefore runs from 1 June 2023, not from final assessment.

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