Custom Act, 1962 – CS Executive Tax Laws MCQs

The offenses committed under the Customs Act, 1962 are having criminal liability as well as civil liability. However, the offenses involving duty evasion of more than ₹…………or/ and of……………….are nonbailable of fences under criminal liabilities.

Selfassessment of duty as per section 17 of the Customs Act, 1962 is being done by Importer and Exporter relating to the goods subject to duty and after final assessment of duty if any, amount refundable is not refunded within………..from the date of assessment of duty finally there shall be paid interest on such unrefunded amount by Central Government.

Find from the following list which is treated as Port under the provisions of the Customs Act, 1962 :

Sai Cars Ltd. is a dealer in cars. They import cars from abroad and sell them to customers in India. On 20th March, they have imported cars from Japan, as per the following details:Customs duty 10%Compensation Assessable value of cars = ₹ 4,00,00,000Sai Cars Ltd. is eligible to claim an input tax credit (ITC). Their output IGST liability, before taking credit for ITC is ₹ 130 lakh. Compute the net liability towards customs duty and IGST.

Calculate FOB Value, Cost of Insurance, Cost of Freight, and Assessable Value where only the CIF value is given as the US $ 5,000. The exchange rate notified by RBI and CBEC is ₹ 70 and ₹ 68 respectively for one US $.

Meenakshi imported a music player from Dubai and paid ₹ 12,000 as import duty. She used it for 4 months and thereafter reexported the same after 4 months. Calculate the amount of duty drawback allowable under the Customs Act, 1962.

Priya imported certain goods weighing 1,000 kgs having a CIF value of US $ 40,000. The exchange rate of 1 US $ was ₹ 65 on the date of presentation of a bill of entry. Basic customs duty chargeable is @ 10% and Social Welfare surcharge as applicable. There is no Integrated tax and GST compensation payable on these goods if supplied in India. However, vide Notification issued by the Government of India, anti-dumping duty has been imposed on these goods. The anti-dumping duty will be equal to the difference between the amount calculated @ the US $ 60 per kg and the ‘landed value’ of goods. You are required to compute the amount of customs duty and of the antidumping duty payable by Priya.

ABC Ltd. imports equipment by air. CIF price of the equipment is US$ 6,000, freight paid is US$ 1,200 and insurance cost is US$ 1,800. CBIC notifies the exchange rate as ₹ 70 per $. ABC Ltd. expends ₹ 56,000 in India for certain development activities with respect to the imported equipment. Basic customs duty is 10%, Integrated tax is leviable @12% and social welfare surcharge is 10% on duty. GST Compensation Cess is leviable @ 15%. Compute the amount of total duty payable by ABC Ltd.

A person makes an unauthorized import of goods liable to confiscation. After adjudication, Assistant Commissioner provides an option to the importer to pay a fine in lieu of confiscation. It is proposed to impose a fine (in lieu of confiscation) equal to 50% of the margin of profit. The following particulars are made available:(i) Assessable value: ₹ 65,000(ii) Total duty payable: ₹ 15,808(iii) Market value: ₹ 1,00,000

Interbank k exchange rate: £ 1 = 98CBIC notified exchange rate: £ I = 100Importer paid ₹ 5,000 towards demurrage charges for delay in clearing the machine from the airport. Assessable value =?

KPMG Ltd. imports equipment by Air. CIF price is US $ 6,000, freight paid is US $ 1,200 and insurance is US $ 1,800. RBI prescribes the exchange rate as ₹ 68. CBIC notifies the exchange rate as ₹ 65. What is assessable value under the Customs Law?

Following data is available for import from USA:FOB Value = ₹ 12,70,000Freight = ₹ 2,54,000Insurance = ₹ 6,000

(I) Which of the following statement is incorrect?
Transit is allowed in every port normally.(II) Transhipment is allowed in specified ports only.

Which of the following statement is correct?

I. Customs area does not include a warehouse.II. A beneficial owner of imported goods is a person on whose behalf the goods are being imported but cannot be exported.m. Customs station includes an international courier terminal but does not include the foreign post office.

Which of the following goods are not mandatorily required to be deposited in a special warehouse under section 58A of the Customs Act, 1962?

If the goods are imported by Air, the freight cannot exceed

AntiDumping duty is calculated as

Which of the following duty is/ are now subsumed under GST?(I) Countervailing duty (CVD)(II) Special Additional Duty (SAD)

The Central Government may if it deems necessary to do so in the general interest of the public, exempt goods

The advance ruling application can be withdrawn within_____of the application.

Which of the following can be classified as ‘civil liability under the Customs Act, 1962?

Self-assessed goods may be_____by the proper officer.

A refund application must be filed within______from the date of payment of duty.

Which of the following section of the Customs Act, 1962 deals with the option to pay a fine in lieu of confiscation?

Section 123 of the Customs Act, 1962 clearly states that if goods are seized, the onus is on the —

As per Section 112 of the Customs Act, 1962, what is the penalty for “Prohibited goods in respect of which value stated in Bill of Entry or baggage declaration is greater than the actual value”?

As per Section 112 of the Customs Act, 1962, what is the minimum penalty for ‘prohibited goods’?

As per Section 112 of the Customs Act, 1962, what is the penalty for ‘prohibited goods?

As per Section 28(7A) of the Customs Act, 1962, the proper officer may issue a____under such circumstances and in such manner as may be prescribed.

In specific cases, where the duty or interest is not paid, or short paid, by reason of collusion, willful suppression of facts, or misstatement, then the notice could be served within a period of

Section 28(1) of the Customs Act, 1962 provides that the proper officer shall not serve such show cause notice, where the amount involved is less than ______

No drawback shall be allowed

Where any drawback payable to a claimant under section 74 or section 75 is not paid within a period of one month from the date of filing a claim for payment of such drawback, there shall be paid to that claimant in addition to the amount of drawback, interest at the rate of

If goods are used for more than 18 months then how much percentage of import duty can be paid as a drawback as per the rate notified by the Central Government u/s 74(2)?

If goods are used for less than 3 months then how much percentage of import duty can be paid as a drawback as per the rate notified by the Central Government u/s 74(2)?

Which of the following is an eligible condition for availing drawback u/s 74?

As per Section 74 of the Customs Act, 1962, duty drawback is allowed

In the case of any goods not intended for use in any 100% EOU, such goods can be stored up to a period of ______

In the case of capital goods intended for use in any 100% EOU, such goods can be stored up to a period of_____

As per Section 58B(4) of the Customs Act, 1962, where the license issued u/s 57 or 58 or 58A is canceled, the goods warehoused shall, within_____from the date on which order of such cancellation is served on the licensee or within such extended period as the proper officer may allow, be removed from such warehouse to another warehouse or be cleared for home consumption or export

Which of the following types of goods can be warehoused?

In transshipment

As per Section 53 of the Customs Act, 1962, subject to the provisions of section 11, where any goods imported in a conveyance and mentioned in the arrival manifest or import manifest or the import report, as for transit in the same conveyance to any place outside India or to any customs station, the Proper Officer may allow the goods and the conveyance to transit_____ subject to such conditions, as may be prescribed.

As per provisions of Chapter VII of the Customs Act, 1962, in____, the goods remain in the same vessel and consequently reach the port of clearance.

Demurrage charges are levied by the port authorities if goods are not cleared within____of unloading.

The Custodian

Custom ports or airports are appointed by the

In case of a vessel or the aircraft, Import Manifest is required to be delivered

Entry Inward granted by the Customs

In case of vehicle Import Report is required to be delivered:

The Import Manifest or Import Report is required to be delivered under

As per Section 6 of the Customs Act, 1962, to whom the Central Government may, by notification in the Official Gazette, entrust either conditionally or unconditionally any functions of the Board or any officer of customs under the Act.

Which of the following is the duty or responsibility of a person in charge under the Customs Act, 1962?1. To submit Import/Export Manifest.2. To pay import duty on all goods contained in vessel or ship.3. To ensure that the conveyance lands at the appropriate place3. To ensure that the conveyance lands at the appropriate place

Antidumping duty

Safeguard duty is a duty paid on___

If more than one transaction value of identical goods is found then which of the following shall be used to determine the value of imported goods?

FOB Value = ?

CIF Value means

In the case of exports

Mr. Ramsay imported some goods from the USA for US$ 1,00,000. Advise him of the exchange applicable for converting foreign currency value into Indian currency?

Valuation for Customs Duty begins with

______ states that the goods which cannot be classified in accordance with Rule 1,2 or 3, shall be classified under the heading which includes goods that are the most similar.

If composite goods cannot be classified as per Rule 3(a) of the Interpretation Rules, then, shall be classified on the basis of material/substance. This rule is known as

Rule 2(a) of the Interpretation Rules under the Customs Tariff Act, 1975 states that

Schedule II of the Customs Tariff Act, 1975 specifies

Which of the following statement is/are correct?

The onus is on the______ to substantiate with the supporting evidence that the goods are chargeable with a preferential rate of duty.

The general basic rate of basic customs duty is

A warehouse

As per Section 2(38) of the Customs Act, 1962, “Stores”

Proper officer

Which of the following is included within the definition of “foreign going vessel or aircraft” as defined in Section2(21) of the Customs Act, 1962?

Which of the following can be treated as Adjudicating Authority under the Customs Act, 1962?(i) Board [Central Board of Indirect Taxes & Customs (CBIC)](ii) Commissioner (Appeals)(iii) Appellate Tribunal(iv) Authority competent to pass any order or decision under the Act.

As per Section 2(22) of the Customs Act, 1962, “goods” includes

Which of the following is included within the definition of “foreign going vessel or aircraft” as defined in Section 2(21) of the Customs Act, 1962?

“Export goods” means

“Entry” in relation to goods means an entry made in____and includes the entry made under the regulations made under section 84

Which of the following is not included within the definition of “Customs Station” as defined in the Customs Act, 1962?

“ Customs Area” means

As per Section 2(7A) of the Customs Act, 1962, Commissioner (Appeals) means a person appointed to be a Commissioner of Customs (Appeals) under subsection (1) of

“Board” means the Central Board of Indirect Taxes and Customs constituted under the____

As per Section 2(4) of the Customs Act, 1962, “bill of entry” means a bill of entry referred to in ______

For which of the following Rules can be made by the Central Government u/s 156 of the Customs Act, 1962?

Under the Customs Act, 1962, the rulemaking power is delegated to

The Customs Act, 1962, not only regulates the levy and collection of duties but also, serves equally important purposes like(a) Regulation of imports & exports.(b) Protection of domestic industry(c) Prevention of smuggling(d) Conservation & augmentation of foreign exchange

As per Section 2(1) of the Customs Act, 1962,____means any authority competent to pass any order or decision under this Act, but does not include the Board, Commissioner (Appeals), or Appellate Tribunal.

Customs Act, 1962 extends to