CA Final · Indirect Tax Laws · Warehousing
Bharat Marine Supplies imported provisions and entered them for warehousing. It subscribed to a declaration that the goods are to be supplied as stores to vessels without payment of import duty under the Chapter. What may the proper officer do under section 85?
The proper officer may permit the goods to be warehoused without assessing them to duty. Section 85 allows this where the importer declares that the goods will be supplied as stores to vessels or aircraft without payment of import duty. Assessment before warehousing is therefore not required in this case.
- APermit the goods to be warehoused without the goods being assessed to dutyCorrect
- BRefuse warehousing until duty is assessed and paid in full
- CAssess duty at a concessional rate and then permit warehousing
- DPermit warehousing only after a bond of thrice the duty is executed under section 59(1)
Explanation
Section 85 lets the proper officer permit goods to be warehoused without assessment when the importer declares they will be supplied as stores to vessels or aircraft without payment of import duty. Section 59(1) applies to goods assessed to duty, and its thrice-duty bond is computed on assessed duty, so option D misapplies it here.
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