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

Ravi Textiles presented a bill of entry for home consumption on 10 June for goods imported by sea. The vessel made its entry inwards on 14 June. The rate of duty was 10% up to 12 June and 15% from 13 June onwards. Under section 15 of the Customs Act, 1962, which rate applies?

The rate is 15%. A bill of entry presented before the vessel's entry inwards is deemed presented on the date of entry inwards, which is 14 June, when the 15% rate was in force, so the actual presentation date of 10 June is disregarded.

  1. A10%, as the bill of entry was actually presented on 10 June
  2. B15%, as the bill of entry is deemed presented on the date of entry inwards of the vesselCorrect
  3. C10%, as the rate on the date of the contract of sale applies
  4. D15%, as the rate on the date of payment of duty applies

Explanation

Under the proviso to section 15(1), a bill of entry presented before the date of entry inwards of the vessel is deemed presented on the date of entry inwards. That date is 14 June, when the rate is 15%. The 10% option ignores the deeming proviso.

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