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CA Final · Indirect Tax Laws · Levy of and Exemptions from Customs Duty

The Central Board directed that officers of customs should classify a certain product under one uniform heading across all ports. A Board circular further stated that the Deputy Commissioner at Kolkata must assess the pending bill of entry of Mehta Industries Ltd as fully dutiable. Mehta also has an appeal pending before the Commissioner (Appeals). Under section 151A, which statement is correct?

Only the uniform classification instruction is valid. Section 151A lets the Board issue instructions for uniformity in classification and levy of duty, but its proviso bars instructions requiring an officer to make a particular assessment or dispose of a particular case in a particular manner.

  1. ABoth the uniform classification instruction and the direction on Mehta's bill of entry are valid
  2. BOnly the uniform classification instruction is valid; the Board cannot require a particular assessment or disposal of a particular caseCorrect
  3. CNeither is valid, as the Board cannot issue instructions on classification
  4. DOnly the direction on the bill of entry is valid, as it relates to levy of duty

Explanation

Section 151A allows the Board to issue orders and instructions for uniformity in classification or levy of duty. The proviso prohibits instructions requiring an officer to make a particular assessment or dispose of a particular case in a particular manner, or interfering with the discretion of the Commissioner (Appeals). So the general instruction is valid but the case-specific direction is not.

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