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CA Final · Indirect Tax Laws · Valuation under the Customs Act, 1962

Kaveri Exports filed a shipping bill for goods entered for export under section 50. The proper officer made an order permitting clearance and loading under section 51 on 20 August. Export duty was 4% until 18 August and 6% from 19 August. Duty was paid on 17 August. Which rate applies under section 16?

The rate is 6%. For goods entered for export under section 50, the applicable rate is that in force on the date the proper officer makes the order permitting clearance and loading under section 51, here 20 August, not the payment date.

  1. A4%, being the rate on the date of payment of duty
  2. B6%, being the rate on the date the order permitting clearance and loading is madeCorrect
  3. C4%, being the rate on the date the shipping bill was presented
  4. D6%, being the rate on the date the goods left India

Explanation

Under section 16(1)(a), for goods entered for export under section 50, the rate is the one in force on the date the proper officer makes the order permitting clearance and loading under section 51. That is 20 August, so 6% applies. The payment date applies only to other goods under clause (b).

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