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

India enters into a reciprocal arrangement with the customs authority of a foreign country. Under Section 151B of the Customs Act, 1962, which statement is correct about the information received under such an arrangement?

Information received under a reciprocal arrangement may also be used as evidence in investigations and proceedings under the Customs Act, subject to the conditions, exceptions or qualifications specified in the Central Government's notification under sub-section (2).

  1. AIt may also be used as evidence in investigations and proceedings under the Act, subject to conditions in the notification under sub-section (2)Correct
  2. BIt can be used only for risk analysis and never as evidence
  3. CIt can be shared only with the importer concerned
  4. DIt is valid only if the foreign country has enacted a law identical to the Customs Act, 1962

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. Sub-section (2) allows notification with conditions, exceptions or qualifications. The other options add restrictions not in the text.

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