Page 139 - DCOM308_DCOM502_INDIRECT_TAX_LAWS

Indirect Tax Laws

Notes 11C, 11E and 11F not to apply to goods in personal use.
(1) Nothing in sections 11C, 11E and 11F shall apply to any notified goods which are:
(a) in personal use of the person by whom they are owned, possessed or controlled, or
(b) kept in the residential premises of a person for his personal use.
(2) If any person, who is in possession of any notified goods referred to in sub-section (1),
sells, or otherwise transfers for a valuable consideration, any such goods, he shall issue to
the purchaser or transferee, as the case may be, a memorandum containing such particulars
as may be specified by rules made in this behalf and no such goods shall be taken from one
place to another unless they are accompanied by the said memorandum.

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Caution When the goods enter the territorial waters of India, no doubt they would be
under control of the customers authorities, but for fiscal purposes this date is irrelevant
for determining the rate of customs duty.

8.6 Date of Determination of Duty and Tariff Valuations of
Imported Goods

When the goods enter the territorial waters of India, no doubt they would be under control of
the customers authorities, but for fiscal purposes this date is irrelevant for determining the rate
of customs duty. The rate of duty, rate of exchange and valuation applicable to any imported
goods shall be the rate and the valuation in force:

1. in case of goods entered for home consumption on the date on which a bill of entry in
respect of such goods is presented under that section
2. in case of goods cleared from a warehouse on the date on which the goods are actually
removed from the warehouses
3. in case of any other goods – on date of payment of duty

Rates

The rate of duty, rate of exchange and valuation applicable to any Exported goods shall be the
rate and the valuation in force:
1. in the case of goods entered for exported under section 50 of the Customs Act–on the date
on which the proper officer makes an order permitting clearance and loading of the goods
for exportation under section 51 of the Act.
2. in the case of any other goods – on the date of payment of duty
These provisions do not apply to baggage and goods exported by post the export duty becomes
leviable only when the goods are exported and not on the goods which are not exported or
which could not be exported. The amount of duty which has been deposited but not appropriated
would evidently be repayable to the person who has deposited it unless some statutory bar to
such recovery is shown to exist.

8.7 Levy of Custom Duties

Custom Duty is imposed under the Indian Customs Act formulated in 1962 by the Constitution
of India under the Article 265, which states that “no tax shall be levied or collected except by

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