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CMA Final · Indirect Tax Laws and Practice · Trade Facilitation Measures

Before the Finance Bill, 2018 received Presidential assent, the Central Government had signed a customs cooperation arrangement with a foreign country and acted on it. Under Section 151B of the Customs Act, 1962, what is the legal status of those earlier actions?

Those earlier actions are deemed to have been done or taken under Section 151B. Sub-section (5) validates anything done under agreements or arrangements made before the Finance Bill, 2018 received assent, so no re-signing is needed and they are not limited to risk analysis.

  1. AThey are void since no statutory power existed at that time
  2. BThey are valid only if the foreign country re-signs the arrangement
  3. CThey are deemed to have been done or taken under Section 151BCorrect
  4. DThey are valid only for the purpose of risk analysis, not for investigations

Explanation

Section 151B(5) provides, notwithstanding sub-sections (1) to (3), that anything done or action taken in pursuance of an agreement or arrangement made before the Finance Bill, 2018 received assent is deemed to have been done or taken under this section. This validates the earlier actions without re-signing or restriction to risk analysis.

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