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CMA Final · Indirect Tax Laws and Practice · Trade Facilitation Measures

India enters into a bilateral arrangement with a foreign country's customs authority under section 151B of the Customs Act, 1962. Which statement about the information received under that arrangement is correct, subject to any notification under sub-section (2)?

The information may also be used as evidence in investigations and proceedings under the Customs Act. Section 151B(3) allows this, subject to conditions or exceptions in a notification under sub-section (2), so it is not confined to risk analysis or to prosecution.

  1. AIt can be used only for risk analysis and never as evidence
  2. BIt may also be used as evidence in investigations and proceedings under the ActCorrect
  3. CIt can be used only after the foreign country passes a corresponding law
  4. DIt can be used only in proceedings for prosecution, not in adjudication

Explanation

Section 151B(3) provides that, subject to sub-section (2), information received under sub-section (1) may also be used as evidence in investigations and proceedings under the Act. The option saying it is never evidence contradicts this. Nothing limits it to prosecution alone.

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