Ravi Pratap imported certain goods from U.S., for which a bill of entry was presented on 28th Nov., 2018 to the Custom Authorities. The assessable value of consignment was 2,00,000 dollars and the rate of exchange on 28t

CS Professional · Advanced Tax Laws and Practice · PYQS · June 2019
Ravi Pratap imported certain goods from U.S., for which a bill of entry was presented on 28th Nov., 2018 to the Custom Authorities. The assessable value of consignment was 2,00,000 dollars and the rate of exchange on 28th Nov., 2018 was ₹65. Order for the deposit of goods in the warehouse for 3 months was issued on 1st Dec., 2018. Ravi Pratap failed to clear goods from the warehouse within the allowed period of three months and also did not obtain permission for extension of warehousing period. The goods were not cleared from the warehouse till 28th Feb., 2019. The rate of exchange on 28th Feb., 2019 was ₹63 per dollar. Notice under section 72 of the Customs Act, 1962 was served on the importer and finally removed the goods from warehouse on 30th March, 2019. The rate of exchange on the date of removal was ₹64. The rate of Custom duty was 15%, 10% and 8% on 28th Nov., 2018, 28th Feb., 2019 and 30th March, 2019 respectively. Compute amount of Customs duty payable by assuming that no additional duty or SAD is payable.

Answer & Explanation:

Computation of Assessable value and Customs Duty Payable Particulars Amount (₹) Assessable value (2,00,000 x 65) [Note 1] 1,30,00,000 Basic Custom Duty @ 10% [Note 2] [A] 13,00,000 Social Welfare Surcharge (10% of ₹13,00,000) [B] 1,30,000 Total Custom Duty payable [A+B] 14,30,000 Notes: The rate for determination of assessable value shall be of the date when the bill of entry was presented and accordingly the exchange rate of ₹65/- per dollar be applied. The rate of duty shall be charged on the date when the period of warehousing expired since after import, the goods were kept in warehouse. The duty applicable will be of 28.2.2019 being 10%.

Topics: Customs Act, 1962

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