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CA Final · Indirect Tax Laws · Foreign Trade Policy

Goods imported by Rudra Impex in contravention of the Foreign Trade Policy are held by the Adjudicating Authority as liable to confiscation. Rudra wishes to get them released. Under Section 11(8) and (9) of the FT(D&R) Act, 1992, what is the position?

Under Section 11(8), goods imported in contravention of the Act, rules or Policy, along with packages and conveyances, are liable to confiscation. Under Section 11(9), the Adjudicating Authority may release them on payment of redemption charges equivalent to the market value of the goods or conveyance.

  1. AConfiscated goods can never be released
  2. BGoods are liable to confiscation, and may be released on payment of redemption charges equivalent to the market value of the goodsCorrect
  3. CGoods may be released on payment of redemption charges equal to five times the value of goods
  4. DOnly the conveyance is liable to confiscation, not the goods

Explanation

Section 11(8) makes goods, packages and conveyances liable to confiscation by the Adjudicating Authority. Section 11(9) permits release on payment of redemption charges equivalent to the market value of the goods or conveyance. Five times value is the penalty ceiling, not the redemption charge.

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