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CA Final · Indirect Tax Laws · Importation and Exportation of Goods

Under section 11 of the Customs Act, 1962, the Central Government may prohibit import or export of goods by notification. Which of the following is a purpose listed in section 11(2) for which such prohibition may be made?

Prevention of serious injury to domestic production of goods of any description is a listed purpose under section 11(2), enabling prohibition of import or export by notification. Revenue raising, debt repayment and State tax uniformity are not among the listed purposes.

  1. AIncreasing the revenue collection of the Central Government
  2. BFacilitating the repayment of public debt
  3. CThe prevention of serious injury to domestic production of goods of any descriptionCorrect
  4. DEncouraging uniform State-level taxation of goods

Explanation

Section 11(2)(j) lists the prevention of serious injury to domestic production of goods of any description as a permitted purpose. Revenue augmentation, public debt repayment and State-level tax uniformity do not appear in the list of purposes.

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