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CA Final · Indirect Tax Laws · Types of Duty

Which of the following is NOT one of the situations in which the proper officer may direct provisional assessment of duty under section 18(1) of the Customs Act, 1962, subject to security?

Provisional assessment cannot be directed merely because the importer wants to delay payment owing to a funds shortage. Section 18(1) covers only inability to self-assess, need for testing, and further enquiry where documents are complete or incomplete, subject to adequate security.

  1. AThe importer is unable to make self-assessment and requests assessment in writing
  2. BThe proper officer deems it necessary to subject goods to a chemical or other test
  3. CThe importer has furnished full information but the officer deems further enquiry necessary
  4. DThe importer wishes to delay payment of duty because of a temporary shortage of fundsCorrect

Explanation

Section 18(1) lists four situations: inability to self-assess with a written request, need for chemical or other test, further enquiry despite full documents, and further enquiry where documents or information are missing. A wish to delay payment for lack of funds is not listed.

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