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

India enters into an arrangement with a foreign government under section 151B, and the Central Government notifies that the section applies to that contracting State. Information received from that State under the arrangement is used in a customs investigation. Which statement follows from section 151B?

The information may be used as evidence in investigations and proceedings under the Act, subject to the conditions, exceptions or qualifications specified in the notification. Section 151B(3) permits this use, and nothing requires foreign court confirmation or limits it to prosecution.

  1. ASuch information cannot be used in proceedings under the Act, being only for risk analysis
  2. BThe information may be used as evidence in investigations and proceedings under the Act, subject to the notification's conditions, exceptions or qualificationsCorrect
  3. CThe information may be used as evidence only after the foreign State's courts confirm it
  4. DThe information is admissible only in prosecution and not in adjudication

Explanation

Section 151B(3) says 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) lets the notification set conditions, exceptions or qualifications. The text has no requirement of foreign court confirmation and does not restrict use to prosecution.

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