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CMA Final · Indirect Tax Laws and Practice · Remission of Duties

Ravi Exports imported goods which an officer suspects were brought in through a contravention of the Customs Act, so that an offence appears to have been committed. Before any clearance order, Ravi seeks to relinquish title to avoid duty. Which statement is correct under section 23?

Ravi cannot relinquish title. The proviso to section 23(2) denies the right to relinquish title to goods regarding which an offence appears to have been committed under the Customs Act or any other law in force, so he cannot avoid duty that way.

  1. AHe may relinquish title and escape duty as of right
  2. BHe may relinquish title only if he pays interest
  3. CHe is not allowed to relinquish title to such goodsCorrect
  4. DHe may relinquish title only with the Central Government's notification

Explanation

The proviso to section 23(2) states that the owner shall not be allowed to relinquish title to goods regarding which an offence appears to have been committed under the Act or any other law in force. The general right to relinquish title therefore does not apply here. No interest or notification route exists in the text.

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