Skip to content

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

Meridian Traders Pvt Ltd of Pune imports machine parts from Germany. The bill of entry was presented on 10 March, before the vessel's entry inwards. The vessel made its entry inwards on 14 March. The tariff value notification changed on 12 March. Under the Customs Act, 1962, the rate of duty and tariff valuation applicable are those in force on which date?

The applicable date is 14 March. A bill of entry presented before the vessel's entry inwards is deemed under the proviso to section 15 to be presented on the date of entry inwards, so the rate and tariff valuation in force on that date apply, not the earlier actual presentation date.

  1. A10 March, the date the bill of entry was physically presented
  2. B12 March, the date of the tariff notification
  3. C14 March, the date of entry inwards of the vesselCorrect
  4. DThe date on which duty is finally paid

Explanation

Under section 15(1)(a), the date is the one on which 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 that entry inwards. So the deemed date is 14 March. The actual presentation date, 10 March, is therefore wrong.

Did you get it right without looking?

One question tells you little. A timed set on Valuation under the Customs Act, 1962 shows your real accuracy, how long you take and where you lose marks.

Practise Valuation under the Customs Act, 1962Free diagnostic mock

More Valuation under the Customs Act, 1962 questions