CA Final · Indirect Tax Laws · Warehousing
Meera Exports owns goods lying in a warehouse under a section 59 bond. She wants to: (i) inspect the goods, (ii) repack the goods into entirely different packaging to change their commercial form for a new product line, (iii) sort the goods, and (iv) show the goods to a prospective buyer. Which of these actions is NOT among the rights given to the owner of warehoused goods by section 64?
Repacking to change the commercial form for a new product line is not a right under section 64. The owner may inspect, sort, show goods for sale, and deal with containers only as needed to prevent loss, deterioration or damage.
- AInspecting the goods
- BSorting the goods
- CShowing the goods for sale
- DRepacking the goods to change their commercial form for a new product lineCorrect
Explanation
Section 64 lets the owner inspect the goods, deal with their containers as necessary to prevent loss, deterioration or damage, sort the goods, or show them for sale. Dealing with containers is permitted only to prevent loss, deterioration or damage, not to change commercial form for a new product line. Inspection, sorting and showing for sale are expressly listed.
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