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CA Final · Indirect Tax Laws · Liability to Pay in Certain Cases

Goods worth ₹6,00,000 were found in a vehicle with no identifiable owner, and the proper officer believes that delay in assessment may harm revenue. Which statement about summary assessment is correct?

The proper officer may summarily assess with the previous permission of the Additional or Joint Commissioner. Where the taxable person cannot be ascertained and the liability relates to goods, the person in charge of the goods is deemed the taxable person liable to tax and other amounts.

  1. AThe officer can assess only after the taxable person is ascertained and issues a show cause notice under the regular procedure
  2. BThe person in charge of the goods is deemed the taxable person liable to be assessed and to pay tax, if the liability pertains to supply of goods and the taxable person is not ascertainable; the officer needs prior permission of the Additional or Joint CommissionerCorrect
  3. CThe driver can never be treated as liable under any circumstance
  4. DThe officer may assess without any previous permission, since the case is urgent

Explanation

Summary assessment under section 64 needs previous permission of the Additional Commissioner or Joint Commissioner and sufficient grounds to believe delay would harm revenue. If the taxable person is not ascertainable and the liability pertains to supply of goods, the person in charge of the goods is deemed the taxable person. Permission cannot be skipped.

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