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CA Final · Indirect Tax Laws · Types of Duty

Ravi Sharma imports a consignment where the proper officer deems it necessary to subject the goods to a chemical test before assessing duty. Which statement about provisional assessment under section 18 of the Customs Act, 1962 is correct?

Provisional assessment can be directed because the officer considers a chemical test necessary, a ground in section 18(1)(b). The condition is that the importer furnishes security the proper officer deems fit to cover any deficiency between the final and provisionally assessed duty.

  1. AProvisional assessment is allowed only if the importer is unable to self-assess
  2. BProvisional assessment can be directed on this ground, provided the importer furnishes security the proper officer deems fit for any deficiency in dutyCorrect
  3. CProvisional assessment is possible only when documents are missing
  4. DProvisional assessment requires no security from the importer

Explanation

Section 18(1)(b) lets the proper officer direct provisional assessment where he deems it necessary to subject goods to a chemical or other test. This is conditional on the importer furnishing security as the officer deems fit for the deficiency, if any. Limiting it to inability to self-assess or missing documents ignores clause (b).

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