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CA Final · Indirect Tax Laws · Importation and Exportation of Goods

Meena Exports Pvt Ltd, a notified class of exporter, has goods entered for export. The proper officer is satisfied that the goods are not prohibited. Under the Customs Act, 1962, which statement about clearance and payment of export duty is correct?

Under section 51 the officer permits clearance once satisfied goods are not prohibited and duty and charges are paid. Notified classes of exporters may defer payment, and late payment attracts interest at a notified rate not below five or above thirty-six per cent per annum.

  1. AThe officer may permit clearance and loading once satisfied the goods are not prohibited and duty and charges are paid; notified classes of exporters may be allowed deferred payment, and failure to pay by the due date attracts interest at a rate fixed by notification between 5% and 36% a yearCorrect
  2. BClearance is possible only after duty is paid; deferred payment is never allowed and interest is fixed at 18%
  3. CDeferred payment is allowed for all exporters, and interest is charged at exactly 15% a year
  4. DThe officer's order cannot be made electronically even on risk evaluation

Explanation

Section 51 allows clearance when goods are not prohibited and duty is paid. The second proviso permits notified classes to defer payment, and sub-section (2) charges interest at a rate notified between five and thirty-six per cent. Orders may also be made electronically on risk evaluation.

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