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CA Final · Indirect Tax Laws · Foreign Trade Policy

The Central Government proposes to amend a provision of FTP 2023 urgently. Industry bodies, including Kaveri Traders Association, say the Government must first invite their comments for 30 days. Which statement is correct as per FTP 2023?

Consultation is discretionary. The Government may seek views from stakeholders and, as far as possible, give 30 days for responses, but it expressly reserves the right to formulate, amend or incorporate provisions suo moto without seeking any views. So an amendment without consultation remains valid.

  1. AThe Government may seek stakeholder views, ideally allowing about 30 days, but it can suo moto amend the policy without seeking themCorrect
  2. BThe Government must compulsorily seek stakeholder views for 30 days before any amendment, failing which the amendment is void
  3. CStakeholder consultation is prohibited while amending the policy
  4. DThe Government may amend the policy only after obtaining the consent of the importers and exporters concerned

Explanation

Paragraph 1.07(A) says the Government may, when it deems reasonable, seek views and, to the extent possible, give 30 days. It also reserves the right to formulate or amend provisions suo moto without seeking views. Hence consultation is discretionary, not mandatory, which makes the second option wrong.

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