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

Meera Textiles Pvt Ltd of Surat imports a consignment of machinery. The bill of entry for home consumption under section 46 is presented on 10 March, but the vessel carrying the goods makes its entry inwards only on 14 March. A notification raising the rate of basic customs duty takes effect on 12 March. Which date decides the rate of duty and tariff valuation applicable to these goods?

The relevant date is 14 March. Where a bill of entry is presented before the vessel's entry inwards, the proviso to section 15(1) deems it presented on the date of entry inwards. The rate and tariff valuation in force on that date therefore apply, not those on the actual presentation date.

  1. A10 March, the date on which the bill of entry was actually presented
  2. B12 March, the date on which the notification took effect
  3. C14 March, the date of entry inwards of the vessel, as the bill of entry is deemed presented on that dateCorrect
  4. DThe date on which duty is finally paid by Meera Textiles

Explanation

Under section 15(1)(a), the rate and tariff valuation for goods entered for home consumption are those in force on the date the bill of entry is presented. The proviso deems a bill of entry presented before the vessel's entry inwards to be presented on the date of entry inwards, which is 14 March. So the increased rate from 12 March applies. The 10 March option ignores the proviso.

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