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CA Final · Indirect Tax Laws · Types of Duty

Veda Traders Pvt Ltd imports a set of articles in one consignment. Some articles are liable to duty with reference to value at the same rate, and some articles in the set are not liable to duty at all. No evidence of separate values is produced. Under Section 19 of the Customs Act, 1962, at what rate are the articles not liable to duty chargeable?

Articles in the set that are not liable to duty are charged at the rate applicable to value-based articles under clause (b) of Section 19. Nil, lowest or average rates are not provided, and the separate-rate proviso needs evidence of value, which is not produced.

  1. ANil, as they are not liable to duty
  2. BThe rate applicable to value-based articles under clause (b)Correct
  3. CThe lowest rate among all articles in the set
  4. DThe average of rates applicable to all articles

Explanation

Section 19(c) says articles not liable to duty are chargeable at the rate at which articles liable with reference to value are liable under clause (b). Treating them as nil, or using lowest or average rates, has no basis in the section. The proviso allowing separate rates needs evidence of value, which is absent here.

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