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CA Final · Indirect Tax Laws · Importation and Exportation of Goods

Dhruv Industries imported goods under a provisional assessment under section 18. It paid provisional duty on 5 January 2024, and the final assessment was completed on 20 April 2024. The goods are now entered for export. For the two-year period under section 74(1)(b), from which date is the period reckoned, and on what date are goods deemed entered for export under section 74(4)?

The two-year period runs from the date of payment of provisional duty, 5 January 2024, under section 74(4)(b). The goods are deemed entered for export on the date with reference to which the rate of duty is calculated under section 16, per section 74(4)(a).

  1. AFrom the date of final assessment, 20 April 2024; goods deemed entered on the date the proper officer's clearance order is made
  2. BFrom the date of payment of provisional duty, 5 January 2024; goods deemed entered for export on the date with reference to which the rate of duty is calculated under section 16Correct
  3. CFrom the date of payment of provisional duty, 5 January 2024; goods deemed entered on the date of arrival of the vessel at the port
  4. DFrom the date of final assessment, 20 April 2024; goods deemed entered on the date with reference to which the rate of duty is calculated under section 16

Explanation

Section 74(4)(b) deems the date of payment of provisional duty to be the date of payment of duty, so the period runs from 5 January 2024. Section 74(4)(a) deems goods entered for export on the date with reference to which the rate of duty is calculated under section 16. The other options use the final assessment date or other dates, which the section does not specify.

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