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CMA Final · Indirect Tax Laws and Practice · Remission of Duties

Under section 28A of the Customs Act, 1962, which condition must be satisfied before the Central Government may direct by notification that duty not levied or short-levied need not be paid?

The Central Government must be satisfied that a practice was generally prevalent regarding levy of duty, including non-levy, on the goods, while the goods were actually liable to duty or to a higher duty than the practice levied. Then it may notify that the duty need not be paid.

  1. AThe importer must have filed a written appeal against the assessment
  2. BA practice must have been generally prevalent regarding levy of duty, including non-levy, on goods, though the goods were liable to duty or higher dutyCorrect
  3. CThe goods must have been lost or destroyed before clearance
  4. DThe duty must have been paid under protest and a refund claimed within one year

Explanation

Section 28A(1) requires the Central Government to be satisfied that a practice was or is generally prevalent regarding levy of duty (including non-levy) and that the goods were liable to duty or to a higher duty than levied under that practice. Only then can it notify that the duty not be required to be paid. Options 3 and 4 relate to other provisions.

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