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CA Final · Indirect Tax Laws · Types of Duty

Under which situation can the proper officer direct provisional assessment of duty under the Customs Act, 1962, provided the importer furnishes the security the officer considers fit?

Provisional assessment may be directed where the importer has produced all documents and furnished full information, yet the proper officer considers further enquiry necessary. Security for any deficiency between final and provisional duty must be furnished. The provision does not need a prior default, warehousing or penalty.

  1. AWhen the importer has produced all documents and full information but the officer deems further enquiry necessaryCorrect
  2. BOnly when the importer has failed to pay any duty on the goods
  3. COnly when goods are cleared from a warehouse
  4. DOnly when the importer has been penalised earlier

Explanation

Provisional assessment is allowed in four situations: importer unable to self-assess and requests in writing; a chemical or other test is needed; documents and information are complete but further enquiry is deemed necessary; or documents or information are missing and further enquiry is deemed necessary. The first option matches the third situation. The other options add conditions that the provision does not contain.

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