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CA Final · Indirect Tax Laws · Foreign Trade Policy

The Central Government is proposing an amendment to a provision of FTP 2023 and has invited views from importers and industry experts. Which statement is consistent with Paragraph 1.07(A) of the Policy?

Consultation is discretionary. When the Government seeks stakeholder views it may, as far as possible, give 30 days, but it reserves the right to formulate or amend Policy provisions suo moto without seeking any views. So an amendment without consultation remains valid.

  1. AThe Government must always seek stakeholder views for 60 days before any amendment
  2. BWhere it consults, it may, to the extent possible, provide 30 days for views, but it may also amend suo moto without seeking viewsCorrect
  3. CStakeholder consultation is prohibited, and amendments may be made only suo moto
  4. DAny amendment made without consultation is invalid

Explanation

Paragraph 1.07(A) says the Government may seek views when it deems reasonable, and to the extent possible 30 days may be given. It also reserves the right to formulate or amend provisions suo moto. Hence consultation is discretionary and a no-consultation amendment is not invalid.

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