Skip to content

CMA Final · Indirect Tax Laws and Practice · Manufacture in Bond

Ananya Textiles Ltd. has warehoused several consignments over the year. Rather than executing a separate bond for each, it wishes to give one bond covering goods it will import over a specified period. Which statement follows from section 59?

The Assistant or Deputy Commissioner of Customs may permit a general bond in an approved amount for goods the importer warehouses within a specified period. Section 59(2) provides this, and security under section 59(3) is still required in addition.

  1. AIt is not permitted; a separate bond is mandatory for every bill of entry
  2. BThe Assistant or Deputy Commissioner of Customs may permit a general bond in an amount he approves for goods to be warehoused within a specified periodCorrect
  3. CThe Central Government alone can permit a general bond, fixed at thrice the duty
  4. DA general bond is allowed only if no security is furnished

Explanation

Section 59(2) lets the Assistant Commissioner or Deputy Commissioner permit a general bond in an approved amount for goods imported within a specified period. Under section 59(3) security must still be furnished in addition to the bond, so the last option is wrong.

Did you get it right without looking?

One question tells you little. A timed set on Manufacture in Bond shows your real accuracy, how long you take and where you lose marks.

Practise Manufacture in BondFree diagnostic mock

More Manufacture in Bond questions