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

India has entered into a reciprocal arrangement with a foreign customs authority under Section 151B of the Customs Act, 1962. Information received under that arrangement, subject to the conditions in the notification applying the section to that contracting State, may be used in which manner?

Information received under a reciprocal arrangement may also be used as evidence in investigations and proceedings under the Customs Act, subject to the conditions or exceptions specified in the notification for that contracting State. It is not limited to risk analysis.

  1. AOnly for risk analysis, and never as evidence in any proceeding
  2. BAlso as evidence in investigations and proceedings under the ActCorrect
  3. COnly for proceedings in the foreign country concerned
  4. DOnly after the foreign authority consents in each case before a court

Explanation

Section 151B(3) states 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. So it is not confined to risk analysis. The text does not require case-by-case consent of the foreign authority.

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