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CA Final · Indirect Tax Laws · Foreign Trade Policy

Vikram Overseas attempted an export contrary to the Foreign Trade Policy, and the goods were confiscated by the Adjudicating Authority under Section 11(8). The goods have a market value of ₹6,50,000. Which statement is correct regarding release under Section 11(9)?

Confiscated goods may be released by the Adjudicating Authority on payment of redemption charges equal to their market value, under prescribed conditions. For goods with a market value of ₹6,50,000, the redemption charge is therefore ₹6,50,000.

  1. AGoods can be released on payment of redemption charges equivalent to the market value, i.e. ₹6,50,000, subject to prescribed conditionsCorrect
  2. BGoods can never be released once confiscated
  3. CGoods can be released on payment of 10% of market value
  4. DGoods can be released on payment of five times the market value

Explanation

Section 11(9) allows release by the Adjudicating Authority on payment of redemption charges equivalent to the market value of the goods or conveyance, in the prescribed manner and conditions. So ₹6,50,000 applies. Other percentages or multiples are not in the provision.

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