CA Final · Indirect Tax Laws · Warehousing
Chitra Enterprises warehoused goods under a bond executed under section 59 and later moved all of them to another warehouse. Rohan Ltd then bought part of the goods while they remained in bond, and the part was transferred to Rohan Ltd. Which statement is correct under the Customs Act, 1962?
Chitra's bond continues in force despite the move to another warehouse. Rohan Ltd, as transferee of part of the goods, must execute its own bond in the manner of section 59(1) or (2) and also furnish the prescribed security.
- AChitra's bond ceases on transfer to another warehouse, and Rohan need not execute any bond
- BChitra's bond continues despite the transfer to another warehouse, and Rohan Ltd must execute its own bond and furnish security for the part transferred to itCorrect
- CRohan Ltd need only furnish security, with no bond
- DOnly the warehouse keeper must execute a bond for the transferred part
Explanation
Section 59(4) keeps the bond in force notwithstanding transfer to another warehouse. Under section 59(5), a transferee of whole or part of the goods must execute a bond as in sub-section (1) or (2) and furnish security under sub-section (3).
Did you get it right without looking?
One question tells you little. A timed set on Warehousing shows your real accuracy, how long you take and where you lose marks.
More Warehousing questions
- Sunrise Traders Pvt Ltd imports a consignment of machinery parts and files a bill of entry for warehousing. The bill is assessed and the cus…
- Eastern Shipping Stores Ltd enters imported goods for warehousing and subscribes to a declaration that the goods will be supplied as stores …
- Kaveri Traders has warehoused imported goods under a bond executed under section 59. It transfers all the goods to another warehouse. Which …
- Bharat Marine Supplies imports 1,000 units of provisions with duty Rs. 50,000 on the whole lot and enters them for warehousing as stores for…
- Surya Chemicals warehoused goods under a bond executed under section 59. It later transfers all the goods to another warehouse, still in its…
- Orion Foods Ltd. warehoused 1,000 cartons under a bond. It transferred 400 cartons to Sharma Distributors, a different person, and cleared t…