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

Neha Traders wishes to take goods out of a bonded warehouse for home consumption. She presents a bill of entry for home consumption under section 68 on 2 July, and the goods are physically removed from the warehouse on 6 July. The tariff valuation was revised on 4 July. Which statement is correct under section 15?

The tariff valuation in force on 2 July applies. For goods cleared from a warehouse under section 68, section 15 uses the date a bill of entry for home consumption is presented, not the date of physical removal or the date of any later revision.

  1. AThe tariff valuation in force on 6 July applies, being the date of actual removal
  2. BThe tariff valuation in force on 4 July applies, being the date of revision
  3. CThe tariff valuation in force on 2 July applies, being the date the bill of entry for home consumption is presentedCorrect
  4. DThe tariff valuation in force on the date the goods were originally warehoused applies

Explanation

Section 15(1)(b) provides that for goods cleared from a warehouse under section 68, the date is that on which a bill of entry for home consumption is presented under that section, here 2 July. Actual removal is no longer the relevant date, as the provision was amended to refer to presentation. The revision on 4 July therefore does not apply.

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