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CA Final · Indirect Tax Laws · Foreign Trade Policy

Sunrise Textiles Ltd, Surat, has asked the DGFT which law gives the Central Government the power to notify and amend the Foreign Trade Policy 2023. Which of the following is the correct legal basis, as stated in the Policy?

The Foreign Trade Policy 2023 is notified by the Central Government under Section 5 of the Foreign Trade (Development and Regulation) Act, 1992. That section lets the Government formulate, announce and amend the policy by Official Gazette notification. Section 11 only deals with contraventions and penalties.

  1. ASection 5 of the Foreign Trade (Development and Regulation) Act, 1992Correct
  2. BSection 11 of the Foreign Trade (Development and Regulation) Act, 1992
  3. CSection 5 of the Customs Act, 1962
  4. DSection 7 of the Central Goods and Services Tax Act, 2017

Explanation

Paragraph 1.00 of FTP 2023 says the Policy is notified by the Central Government in exercise of powers under Section 5 of the FT(D&R) Act, 1992. Section 11 deals with contraventions and penalties, not with formulating the policy. The Customs Act and CGST Act do not empower the Government to notify the FTP.

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