Bholaram imported certain goods in November, 2015 and an 'into bond' bill of entry was presented on 28th November, 2015. Assessable value was US $1,00,000. Order permitting the deposit of goods in warehouse for 3 months

CS Professional · Advanced Tax Laws and Practice · PYQS · December 2017
Bholaram imported certain goods in November, 2015 and an 'into bond' bill of entry was presented on 28th November, 2015. Assessable value was US $1,00,000. Order permitting the deposit of goods in warehouse for 3 months was issued on 2nd Dec. 2015. Bholaram neither obtained extension of warehousing period nor cleared the goods within the permitted warehousing period of 1st March, 2016. Only after a notice was issued under section 72 of the Customs Act, 1962 demanding duty and other charges, Bholaram removed the goods on 15th April, 2016. Compute the amount of duty payable by Bholaram while removing the goods from warehouse, assuming that no additional duty or special additional duty is payable. You are supplied with the following information : 28.11.2015 01.03.2016 15.04.2016 Rate of exchange per USD ₹56 ₹55 ₹54 Rate of basic customs duty 15% 10% 5%

Answer & Explanation:

Amount of duty payable by Bholaram:- Amount Assessable Value in $ $1,00,000 Rate of Exchange [As per section 14, rate of exchange in force on date of presentation of bill of entry for ware-housing shall apply. Hence, rate in force on 28-11-2015 would apply.] ₹56 per USD Assessable Value is ₹56,00,000 Rate of duty [Since goods remained in warehouse beyond permitted period, hence, as per section 72, they are deemed to be removed on expiry of warehousing period on 1-3-2016. Hence, rate of duty in force on date of such deemed removal would apply as per Kesoram Rayon (SC) and SBEC Sugars (SC)] 10% BCD @ 10.3% of assessable value [10.3% of ₹56,00,000] ₹5,76,800

Topics: Customs Act, 1962

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