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

Meera Textiles files a bill of entry for home consumption under section 46 for imported fabric on 10 March, before the vessel carrying the goods has made entry inwards. The vessel makes entry inwards on 14 March. Duty is paid on 16 March. Under section 15 of the Customs Act, 1962, the rate of duty and tariff valuation applicable to the goods is the one in force on:

The applicable rate and tariff valuation are those in force on 14 March. A bill of entry presented before the vessel's entry inwards is deemed presented on the date of that entry inwards, so the earlier presentation date and the later payment date are both irrelevant.

  1. A10 March, the date the bill of entry was presented
  2. B14 March, the date of entry inwards of the vesselCorrect
  3. C16 March, the date of payment of duty
  4. DThe date on which the goods are actually cleared from the port

Explanation

Section 15(1)(a) fixes the date as the date the bill of entry is presented under section 46. The proviso deems a bill of entry presented before the vessel's entry inwards to have been presented on the date of that entry inwards, which is 14 March. Choosing 10 March ignores the proviso, and 16 March wrongly uses the date of payment, which applies only to goods not covered by clauses (a) and (b).

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