CA Final · Indirect Tax Laws · Warehousing
Skyline Catering imports food items and enters them for warehousing, declaring that they will be supplied as stores to aircraft without payment of import duty under the Chapter. Under section 85 of the Customs Act, 1962, what may the proper officer do?
The proper officer may permit the goods to be warehoused without assessment to duty. Under section 85, where the importer subscribes to a declaration that the goods will be supplied as stores to vessels or aircraft without payment of import duty, assessment is not required before warehousing.
- APermit the goods to be warehoused without the goods being assessed to dutyCorrect
- BRefuse warehousing unless duty is first paid in full
- CPermit warehousing only after assessing duty and obtaining a bond of thrice the duty
- DAllow clearance for home consumption without any declaration
Explanation
Section 85 applies where goods are entered for warehousing and the importer makes and subscribes to a declaration that they are to be supplied as stores to vessels or aircraft without payment of import duty. The proper officer may then permit warehousing without assessing the goods to duty. The assessment-based bond of section 59 is therefore not triggered in this way.
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