CA Final · Indirect Tax Laws · Warehousing
Kiran Traders imports goods regularly and wants to warehouse several consignments over the coming months without executing a fresh bond each time. Which statement is correct under section 59 of the Customs Act, 1962?
The Assistant Commissioner or Deputy Commissioner of Customs may permit a general bond in an approved amount covering warehousing of goods imported within a specified period. Section 59(2) allows this, though security must still be furnished in addition under section 59(3).
- AOnly the Board can permit a general bond, and only for public warehouses
- BThe Assistant or Deputy Commissioner of Customs may permit a general bond in an amount he approves for goods to be imported within a specified periodCorrect
- CA general bond must always equal thrice the duty on each consignment, so no concession is possible
- DA general bond removes the need to furnish any security
Explanation
Section 59(2) lets the Assistant or Deputy Commissioner permit a general bond in an approved amount for goods imported within a specified period. Section 59(3) still requires security in addition to the bond, so the last option is wrong.
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