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CA Final · Indirect Tax Laws · Foreign Trade Policy

Himalaya Impex Ltd was penalised by the Adjudicating Authority under the FT(D&R) Act, 1992 and has not paid. The Director General has failed to recover the amount by deduction from money owing to the firm, by deduction through customs officers, or by detaining or selling its goods in customs control. Which further step does Section 11 permit?

If recovery by deduction or by detaining goods fails, Section 11(5)(d) allows a certificate to be sent to the Collector of the District, who recovers the sum as an arrear of land revenue, or the Director General's officers may detain and sell the defaulter's movable or immovable property.

  1. AOnly suspension of the IEC, with no recovery of the amount
  2. BImmediate imprisonment of the directors under the same section
  3. CSending a certificate to the Collector of the District, who recovers the amount as an arrear of land revenue, or detaining and selling movable or immovable propertyCorrect
  4. DAutomatic waiver of the penalty after thirty days

Explanation

Section 11(5)(d) applies where recovery under clauses (a), (b) and (c) fails. The Director General may send a certificate to the Collector for recovery as arrear of land revenue, or detain and sell movable or immovable property. IEC suspension under 11(7) is additional, not exclusive; the section does not provide imprisonment or waiver.

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