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

Mehta Traders files a bill of entry for home consumption under section 46 for machinery on 10 June, before the vessel carrying it arrives. The vessel's entry inwards is on 14 June, and duty is paid on 16 June. The tariff valuation changes on 12 June. Under section 15 of the Customs Act, 1962, the tariff valuation applicable is the one in force on:

The applicable valuation is the one in force on 14 June. A bill of entry presented before the vessel's entry inwards is deemed presented on the date of entry inwards under the proviso to section 15(1), so the earlier presentation date and the later payment date are both irrelevant.

  1. A10 June, the date the bill of entry was presented
  2. B14 June, the date of entry inwards of the vesselCorrect
  3. C16 June, the date of payment of duty
  4. D12 June, the date of the change

Explanation

Under the proviso to section 15(1), a bill of entry presented before the date of entry inwards of the vessel is deemed presented on the date of entry inwards. The deemed date is therefore 14 June. Choosing 10 June ignores the proviso, and 16 June applies only to goods not covered by clauses (a) and (b).

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