Page 149 - DCOM308_DCOM502_INDIRECT_TAX_LAWS

Indirect Tax Laws

Notes prohibition imposed by or under the Customs Act or any other law for the time being in
force shall be liable to confiscation.

8.10 Keywords

Additional Duty: This additional duty is levied under section 3(1) of the Custom Tariff Act and
is equal to excise duty levied on a like product manufactured or produced in India. If a like
product is not manufactured or produced in India.

Countervailing duty: This duty is equivalent to central excise duty leviable on a like product
manufactured in India.
Illegal import: The import of any goods in contravention of the provisions of this Act or any
other law for the time being in force.
Import-Export Policy: Import of goods into and export from India is regulated by the Foreign
Trade Policy (the Policy) issued from time to time by Government of India. The Policy remains
in force for five years and is amended from time to time.

8.11 Review Questions

1. How does the customs duty restrict import of hazardous goods?

2. Elucidate upon various types of duties that can be levied under the Indian custom laws.
3. What has Indian govt. done to check trafficking of illegal import and export?
4. When would an International trader need warehousing? What role does customs duty
play in that?
5. Discuss the regulations regarding goods imported or to be exported by post.

6. Explain the concepts of green channel and red channel. Also discuss their significance.
7. Why are the concessions made in customs duty in respect of imported stores for the Navy?
Discuss.
8. Describe about the levy of custom duties.
9. What are the rules for collection and exemption from custom duty?

Answers: Self Assessment

1. Customs 2. Additional
3. Prohibited 4. Export
5. Environment 6. Valuation
7. 1962 8. Imports
9. Central 10. 30%

11. Exportation 12. Imported
13. Paid 14. Articles
15. Duty

144 LOVELY PROFESSIONAL UNIVERSITY