CA Final · Indirect Tax Laws · Warehousing
Nirmal Textiles has goods in a customs warehouse. Its manager proposes the following steps. Which one is a right of the owner of warehoused goods under section 64?
Sorting the goods is the owner's right. Section 64 allows the owner of warehoused goods to inspect them, deal with containers to prevent loss or damage, sort them, or show them for sale. It does not allow manufacture or removal without duty.
- ASorting the goods after they are warehousedCorrect
- BSelling the goods in the warehouse with no further condition
- CManufacturing new goods from them in the warehouse
- DRemoving the goods without duty payment or permission
Explanation
Section 64 allows the owner to inspect the goods, deal with containers to prevent loss, deterioration or damage, sort the goods, or show the goods for sale. Sorting is therefore permitted. Selling outright, manufacturing and unauthorised removal are not listed.
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