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Yash ShahYash Shah

Introduction to this article

My this article particularly talks about what is the procedure and mechanism for assessing the value of the duty and what is the rate of the duty that shall be applied. Further it explains the Cases where the organization or the assessee can ask for remission, abatement for specific goods and exemptions from paying the duty.Remission to waive off the duty. Abatement is to charge article or produce at a lower rate. And Exemption means to Exempt the product from paying off the duty. For more discussion , I have briefed all about the provisions.

♣ Procedure, Mechanism and organisation for assessment of Duty

1. Meaning of Assessment – Quantification of the amount of Duty payable

  • Process of Assessment – Determination of

a. Quantity and Total Value

b. Tariff Classification of goods

c. Appropriate Rate of goods

d. Clearing for home consumption or Warehousing

2. Valuation of goods [Sec 14] – Will be covered Later separately

3. Date of determining the rate of Duty [Sec 15]

In case of Rate of Duty and Tariff Valuation
1. Entered for Home Consumption u/s 46 Bill of Entry is presented
2. Cleared for Warehousing u/s 68 Bill of Entry for Home Consumption is presented
3. Any other Goods Of Payment of Duty

Note – Provisions of this Section shall not apply to baggage & goods imported by post.

4. Flow of Assessment and Clearance Procedure :-Duty♣ Remission, Abatement & Exemptions :-

1. No Duty on Pilfered Goods [Sec 13]

a. Conditions to be satisfied –

i. Should have been Pilfered

ii. After unloading of goods but before proper officer makes order of clearance.

iii. Should not have been restored back to importer.

Meaning of Pilfer – “To steal, especially in small quantities; petty theft”. The term does not include loss of Total package.

b. When Pilferage can be Claimed ?

i. Evidence of tampering

ii. Blank space for missing articles

iii. Should be Unit articles [Not part articles]

c. Pilferage noticed at the time of Removal of goods

-Sometimes pilferage can be known only at the time of removal of goods

-When the order of clearance is already passed

-Then importer has to ask for survey either by steamer agents or by insurance surveyors and the report issued would form basis for claiming the remission.

d. Following points are important :-

i. Goods are pilfered after order for clearance but before actual clearing, then duty is leviable.

ii. This Section only for pilferage and not loss/destruction

iii. Sec 13 not apply if pilferage is before unloading of goods

iv. In Pilferage, on Sec 13 is applicable and 23(1) is not applicable.

Disclaimer :- This notes has been Hand Written by the author. Any Information or any suggestion given in the notes are only from personal opinion and do not create any liability on the part of author. The author has exclusive rights over the documents. If any one found copying it will be liable for Legal Action.

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June 2024