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CA Final · Indirect Tax Laws · Types of Duty

Option letters are listed in order. Sunrise Polymers Ltd imports goods and the proper officer deems it necessary to subject them to a chemical test before assessment. Which statement is correct under section 18 of the Customs Act, 1962?

The officer may direct provisional assessment. Section 18(1)(b) covers goods needing a chemical or other test, and the importer must furnish security the officer deems fit for any deficiency between the provisional and final duty. A written request is only one of several grounds.

  1. AThe officer may direct provisional assessment if the importer furnishes security the officer deems fit for any deficiency in dutyCorrect
  2. BProvisional assessment is possible only when the importer makes a written request because he cannot self-assess
  3. CProvisional assessment is allowed only for warehoused goods and not for goods cleared for home consumption
  4. DProvisional assessment requires the importer to deposit a bond of twice the duty in every case

Explanation

Section 18(1)(b) covers the case where the proper officer deems it necessary to subject goods to a chemical or other test. The officer may then direct provisional assessment if security is furnished as deemed fit. The written-request route is a separate clause (a). The twice-the-excess bond applies only to warehoused goods under sub-section (2)(b).

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