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CA Final · Indirect Tax Laws · Importation and Exportation of Goods

Sunrise Exports Ltd, Pune, exported a consignment of machine parts and, after some months, the same goods came back into India. Under the Customs Act, 1962, what is the duty position on these re-imported goods?

Re-imported goods are liable to duty and to all conditions and restrictions applicable to goods of like kind and value on importation. The section no longer contains the old provisos, so there is no automatic exemption for goods previously exported from India.

  1. AThey are fully exempt from duty because they originated in India
  2. BThey are liable to duty and subject to the conditions and restrictions applicable to goods of like kind and value on importationCorrect
  3. CThey are liable only to the duty that was refunded at the time of export
  4. DThey are liable to duty only if they were re-imported after two years

Explanation

Section 20 provides that goods imported into India after exportation are liable to duty and subject to all conditions and restrictions to which goods of like kind and value are liable on importation. The old provisos have been omitted, so there is no automatic exemption and no two-year condition. Option 3 invents a measure of duty that the section does not contain.

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