Skip to content

CA Final · Indirect Tax Laws · Warehousing

Dev Marine Supplies imported provisions and warehoused them under a bond. All goods covered by the bond were later partly cleared for home consumption on payment of duty, partly exported, and the balance was transferred to another person who executed his own bond. A small shortage was duly accounted for, and all amounts due on the goods were paid. What may the proper officer do?

The proper officer shall cancel the bond as discharged in full and, on demand, deliver it to the person who executed it or is entitled to receive it. Section 73 covers goods cleared, exported, transferred or otherwise duly accounted for, once all amounts due are paid.

  1. ACancel the bond as discharged in full and deliver it on demand to the person entitledCorrect
  2. BKeep the bond until one year passes from the last clearance
  3. CCancel the bond only for the exported portion
  4. DRefuse cancellation since goods were transferred rather than cleared or exported

Explanation

Section 73 requires cancellation when the whole of the goods is cleared for home consumption, exported, transferred or otherwise duly accounted for and all dues are paid. Transfer is expressly included, so the fourth option is wrong. The cancelled bond is delivered on demand.

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.

Practise WarehousingFree diagnostic mock

More Warehousing questions