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

The Board, finding that the value of a class of imported goods fluctuates, notifies tariff values for that class under section 14(2). Which statement is correct as per the section?

Duty is chargeable with reference to the notified tariff value. Section 14(2) operates notwithstanding the transaction value rule: where the Board considers it necessary or expedient, it may notify tariff values for any class of imported or export goods, and duty then follows that tariff value.

  1. ADuty on such goods is chargeable with reference to the notified tariff valueCorrect
  2. BDuty is chargeable on the transaction value actually paid, and the tariff value is only indicative
  3. CTariff values may be fixed only for imported goods and never for export goods
  4. DThe Board may fix tariff values only if the buyer and seller are related

Explanation

Section 14(2) operates notwithstanding section 14(1). Where the Board is satisfied it is necessary or expedient, it may notify tariff values for any class of imported or export goods having regard to the trend of value, and duty is then chargeable by reference to that tariff value. The other options contradict this text.

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