CA Final · Indirect Tax Laws · Warehousing
Eastern Shipping Stores Ltd enters imported goods for warehousing and subscribes to a declaration that the goods will be supplied as stores to vessels without payment of import duty. What may the proper officer do under the Customs Act, 1962?
The proper officer may permit the goods to be warehoused without their being assessed to duty. Section 85 allows this where the importer subscribes to a declaration that the goods will be supplied as stores to vessels or aircraft without payment of import duty.
- APermit warehousing without the goods being assessed to dutyCorrect
- BRequire full assessment and a bond of thrice the duty before warehousing
- CRefuse warehousing because such stores cannot be warehoused
- DPermit warehousing only if duty is paid first and refunded later
Explanation
Section 85 allows the proper officer to permit goods entered for warehousing to be warehoused without assessment to duty where the importer declares they are to be supplied as stores to vessels or aircraft without payment of import duty. The bond of thrice the duty in section 59 relates to goods assessed to duty, so the second option is wrong.
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