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CA Final · Indirect Tax Laws · Foreign Trade Policy

The Central Government proposes to insert a new provision in the Foreign Trade Policy 2023. The Ministry wants to consult exporters such as Kaveri Textiles Ltd. Based on the Policy, which statement is correct?

The Government may consult stakeholders when it considers it reasonable and, to the extent possible, give 30 days for their views. However, it reserves the right to formulate or amend Policy provisions suo moto without seeking views, so consultation is not mandatory.

  1. AConsultation is mandatory in every case, and the Government cannot amend the Policy without a 30-day consultation
  2. BWhere it consults stakeholders, it may, to the extent possible, allow 30 days for views, but it may also formulate or amend provisions suo moto without seeking viewsCorrect
  3. CThe Government can consult only importers, not exporters or industry experts
  4. DThe Government must allow at least 60 days, failing which the amendment is void

Explanation

Para 1.07(A) lets the Government seek views from importers, exporters and industry experts when it deems reasonable, giving 30 days to the extent possible. It reserves the right to act suo moto. Hence consultation is not mandatory, which makes the first option wrong.

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