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CMA Final · Indirect Tax Laws and Practice · Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017

Under section 24 of the Customs Act, 1962, when imported goods ordinarily used for more than one purpose are denatured or mutilated at the owner's request under rules made by the Central Government, the goods are chargeable to duty at:

Goods denatured or mutilated at the owner's request under the rules are chargeable to duty at the rate that would apply if they had been imported in the denatured or mutilated form, not at the rate for the original form.

  1. AThe rate applicable as if the goods had been imported in the denatured or mutilated formCorrect
  2. BThe rate applicable to the goods in their original form
  3. CThe highest rate among the possible uses
  4. DNil rate, since they are unfit for one purpose

Explanation

Section 24 states that denatured or mutilated goods are chargeable at the rate that would apply had they been imported in that denatured or mutilated form. The original-form rate is therefore wrong, and no nil rate or highest-rate rule is provided.

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