CMA Final · Indirect Tax Laws and Practice · Remission of Duties
Under section 23 of the Customs Act, 1962, an importer wishes to relinquish title to imported goods. Which statement is correct?
The owner may relinquish title before an order for home consumption clearance or warehousing is made, and then owes no duty. The proviso denies this right for goods where an offence appears to have been committed under the Customs Act or any other law.
- ARelinquishment is allowed at any time, even after the goods are cleared for home consumption, if the importer pays a fine
- BRelinquishment is allowed before an order for clearance under section 47 or for warehousing under section 60 is made, but not for goods in respect of which an offence appears to have been committedCorrect
- CRelinquishment is allowed only for goods that have been destroyed
- DRelinquishment is allowed for all goods including those involving an apparent offence, provided duty is paid
Explanation
Section 23(2) lets the owner relinquish title at any time before an order for clearance for home consumption (section 47) or for warehousing (section 60) is made, and he is then not liable for duty. The proviso bars relinquishment for goods where an offence appears to have been committed under the Act or any other law.
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