Ch. 20 Overview of Customs Act: PYQ Decoder

June 2026Q. 6(d)5 marksSyllabus 2022

(d)M/s Rajkumar Enterprises have imported a machine from U.K. and furnished the following particulars in relation to such import :

S. No.	Particulars	Amount
(i)	F.O.B. cost of the machine	20,000 U.K. Pounds
(ii)	Freight (air)	3,000 U.K. Pounds
(iii)	License fee relating to imported goods payable by the buyer	20% of F.O.B.
	as a condition of sale	Cost
(iv)	Commission paid to a local agent in India on behalf of exporter	₹ 15,000
(v)	Insurance paid to the insurer in India	₹ 28,000

Other particulars :

(a)Inter- bank exchange rate as arrived at by the authorized dealer : ₹ 92.50 per U.K. Pound.

(b)CBIC had notified for purpose of Section 14 of the Customs Act, 1944, exchange rate of ₹ 90 per U.K. Pound.

Compute the assessable value of goods for the purpose of customs duty for M/s Rajkumar Enterprises.

December 2025Q. 6(d)5 marksSyllabus 2022

(d)M/s Global Imports Ltd., a company based in Mumbai, imported a consignment of industrial machinery from Germany on CIF (Cost, Insurance, Freight) basis. Compute the assessable value of goods for the purpose of custom duty on the basis of the following information :

(i)	FOB value of machinery	€50,000
(ii)	Freight charges (as per invoice)	€12,000
(iii)	Insurance cost (actual) : Not available	—
(iv)	Landing charges : Not separately paid	—
(v)	Exchange rate notified by CBIC on date of filing Bill of Entry (10th June 2025):	₹ 91/€
(vi)	Exchange rate notified by CBIC on date of Entry Inward of Vessel (14th June 2025):	₹ 90/€

Computation of Assessable Value-

Under Section 14 of the Customs Act, assessable value is the transaction value, adjusted as per Customs Valuation (Determination of Value of Imported Goods) Rules, 2007

We are given:

l FOB: € 50,000

l Freight: € 12,000

l Insurance: Not available

l Exchange rate (CBIC): ₹ 90/€

Let us now compute the CIF Value (Cost + Insurance + Freight):

Step 1: Add Freight

l Freight = €12,000

l So, FOB + Freight = € 62,000

Step 2: Insurance (Not available)

l As per Rule 10(2)(b), if insurance is not known, use 1.125% of FOB value

l Insurance = 1.125% × € 50,000 = €562.50

Step 3: CIF Value in Euro =

l € 50,000 (FOB)

l € 12,000 (Freight)

l € 562.50 (Insurance)

= € 62,562.50

Step 4: Convert to INR using CBIC Rate: Exchange rate is applicable @ €91 (Being as on date of filing of Bill of Entry to be considered).

l € 62,562.50 × ₹ 91 = ₹ 56,93,187.50

Step 5: Landing Charges

l As per new rules (since Feb 2017), landing charges are deemed included → No need to add separately

Assessable Value = ₹ 56,93,187.50

as actual i.e. 12,000.

Alternative Answer 6(d)

Computation of Assessable Value-

Under Section 14 of the Customs Act, assessable value is the transaction value, adjusted as per Customs Valuation (Determination of Value of Imported Goods) Rules, 2007

We are given:

l FOB: € 50,000

l Freight: € 12,000

l Insurance: Not available

l Exchange rate (CBIC): ₹ 90/€

Let us now compute the CIF Value (Cost + Insurance + Freight):

Step 1: Add Freight (assuming the shipment is carried from air mode).

l Actual Freight = €12,000 or

l 20% of FOB value = €50,000 * 20 % = €10,000

Whichever is less i.e. €10,000 Step 2: Insurance (Not available)

l As per Rule 10(2)(b), if insurance is not known, use 1.125% of FOB value

l Insurance = 1.125% × € 50,000 = €562.50

Step 3: CIF Value in Euro =

l € 50,000 (FOB)

l € 10,000 (Freight)

l € 562.50 (Insurance)

= € 60,562.50

Step 4: Convert to INR using CBIC Rate: Exchange rate is applicable @ €91. (Being as on date of filing of Bill of Entry to be considered)

l € 60,562.50 × ₹ 91 = ₹ 55,11,187.50

Step 5: Landing Charges

l As per new rules (since Feb 2017), landing charges are deemed included → No need to add separately

Assessable Value = ₹ 55,11,187.50

actual i.e. € 12,000 or 20% of FOB i.e. € 10,000 whichever is lower.

Source⁠‌‌‌‌⁠: ICSI Guideline Answers, December 2025, Q. 6(d) (Syllabus 2022).

December 2025Q. 6A(ii)5 marksSyllabus 2022

(ii)Ms. Aruna Pathak is engaged in the business of works contract services and seeks your guidance as to specific records required to maintained by her under GST laws.

June 2025Q. 6A(i)5 marksSyllabus 2022

( i )Piyush Pvt. Ltd. have imported a machine from U.K. and furnished following particulars in relation to such import :

S. No.	Particulars	Amount
1.	F.O.B. cost of the machine	30,000 U.K. Pounds
2.	Freight (air)	3,000 U.K. Pounds
3.	Engineering and design charges paid to a firm in U.K.	500 U.K. Pounds
4.	License fee relating to imported goods payable by the buyer as a condition of sale	20% of F.O.B. Cost
5.	Materials and components supplied by the buyer free of cost valued	₹ 10,000
6.	Insurance paid to the insurer in India	₹ 6,000

Other Particulars :

(a)Inter-bank exchange rate as arrived at by the authorized dealer : ₹ 72.60 per U.K. Pound.

(b)CBIC had notified for purpose of Section 14 of the Customs Act, 1944, exchange rate of ₹ 70.30 per U.K. Pound.

Compute the assessable value of goods for customs purpose of Piyush Pvt. Ltd.

Computation of assessable value of goods for customs purpose for Piyush Pvt. Ltd.

Particulars	Amount	Amount
	UK Pounds	( ₹ )
FOB cost of Machine	30,000	21,09,000
Add: Engineering and Design charges (paid to a firm in UK)	500	35,150
Add: License fee relating to imported goods payable by the buyer as a condition of sale (20% on 30,000 UKP)	6,000	4,21,800
	36,500
Sub-Total (36,500 UKP x ₹ 70.30) As per explanation to section 14(1) of the customs act, 1962, assessable value should be calculated with reference to the rate of exchange notified by the CBIC (i.e 70.30)		25,65,950
Add: Material and components supplied by the buyer free of cost		10,000
FOB value as per customs		25,75,950
Add: Air Freight (since air freight is ascertainable and is lower than 20% of FOB value, actual sum to be considered. [3000 x 70.30 = ₹ 2,10,900)		2,10,900
Add: Insurance paid to the insurer in India		6,000
CIF Value / Assessable Value		27,92,850

is computed @ 20% of “F.O.B. Cost”.

Alternate Answer to Question No. 6A(i)

Computation of assessable value of goods for customs purpose for Piyush Pvt. Ltd.

Particulars	Amount	Amount
	UK Pounds	( ₹ )
FOB cost of Machine	30,000	21,09,000
Add: Engineering and Design charges (paid to a firm in UK)	500	35,150
Add: License fee relating to imported goods payable by the buyer as a condition of sale (20% on ₹ 26,92,688 FOB value ) [(21,09,000 +31,150+10,000)/80 x 20]	7660.56	5,38,538
	38,160.56
Sub-Total (38,160.56 UKP x ₹ 70.30) As per explanation to section 14(1) of the customs act, 1962, assessable value should be calculated with reference to the rate of exchange notified by the CBIC (i.e 70.30)		26,82,688
Add: Material and components supplied by the buyer free of cost		10,000
FOB value as per customs		26,92,688
Add: Air Freight (since air freight is ascertainable and is lower than 20% of FOB value, actual sum to be considered. [3000 x 70.30 = ₹ 2,10,900)		2,10,900

Add: Insurance paid to the insurer in India	6,000
CIF Value / Assessable Value	29,09,588

charges, cost of Material supplied by the buyer and also including License fee relating to import of goods as part of Custom FOB.

Source⁠‌‌‌‌⁠: ICSI Guideline Answers, June 2025, Q. 6A(i) (Syllabus 2022).

December 2023Q. 6(d)5 marksSyllabus 2022

(d)Calculate FOB Value, Cost of Insurance, Cost of Freight and Assessable Value under Custom Law, where only the CIF value is given as US $ 8,000. Exchange rate notified by RBI and CBIC are ₹ 78 and ₹ 79 respectively for one US $.

December 2022Q. 971 markMCQSyllabus 2017

FOB value of goods - US $ 12,000. Sea freight US $ 2,500. Cost of insurance US $ 150. Currency exchange rate 1 $ = ₹ 75. Assessable value will be...........................

(A)₹ 11,09,737

(B)₹ 10,90,125

(C)₹ 10,91,250

(D)₹ 10,98,750

June 2022Q. 1001 markMCQSyllabus 2017

When the goods consist of more than one material or substance, then the heading which provides the most specific description shall be preferred to headings providing a mere general description. It is the application of rule:

(A)Essential Character Principle

(B)Specific over General

(C)Akin rule

(D)Latter the better

December 2021Q. 971 markMCQSyllabus 2017

Value of Insurance when not ascertainable while making valuation of the imported goods for the purpose of charge of custom duty is to be taken :

(A)1.10% of FOB

(B)1.115% of FOB

(C)1.120% of FOB

(D)1.125% of FOB

June 2021Q. 991 markMCQSyllabus 2017

When goods cannot be classified in accordance with Rules 1, 2 or 3, how is it classified by applying which of the residuary principle ?

(A)Latter the better principle

(B)Akin Principle

(C)Essential Character Principle

(D)Specific identification principle

June 2021Q. 1001 markMCQSyllabus 2017

In determination of FOB value of import what is the presumptive rate of cost of transport, if the actual cost is not ascertainable ?

(A)10% of CIF Value

(B)20% of FOB Value

(C)20% of CIF Value

(D)5% of FOB Value

December 2020Q. 941 markMCQSyllabus 2017

As per Rule 3(1) under the Customs Act,1962, when the goods are imported, the CIF value has to be considered. CIF value for this purpose means to be equal to :

(A)FOB value (-) Cost of freight (+) Insurance

(B)FOB value (+) Cost of freight (+) Insurance

(C)FOB value (+) Cost of freight (-) Insurance

(D)FOB value (-) Cost of freight (-) Insurance

December 2020Q. 951 markMCQSyllabus 2017

Customs duty under the Customs Act, 1962on the imported goods is to be paid on transaction value adjusted in accordance with provision of Rule-10 which is known as CIF value. Calculate the CIF value of the imported goods from the following details and information :
— FOB value ₹ 6,35,000
— Air Freight ₹ 1,40,000
— Insurance ₹ 3,000
(A)₹ 7,78,000
(B)₹ 7,65,000
(C)₹ 7,82,144
(D)₹ 7,83,719

December 2020Q. 971 markMCQSyllabus 2017

Ascertain the total value including the import duty and other chargeable taxes paid on the consignment of Pan Masala imported into India by ABC Imports Limited. CIF value of the consignment is of ₹ 1,00,000 on which chargeable rate of Basic Custom Duty is 37.5%, IGST is 28% and Compensation Cess is 60%.

(A)2,65,550

(B)2,65,756

(C)2,81,500

(D)2,89,280

December 2019Q. 581 markMCQSyllabus 2017

Construction of a complex, building, civil structure or the part thereof including a complex or building intended for sale to a buyer, wholly or partly except where the entire consideration has been received after issuance of completion certificate, where required, by a competent authority or after its first occupation, whichever is earlier as per section - 7 of the CGST Act, 2017 read with item specified in schedule is known as ........................ .

(A)Goods

(B)Both Goods and Services

(C)Services

(D)Contract work

June 2019Q. 6(c)5 marksSyllabus 2017

(c)Discuss valuation rules under section 14 of the Customs Act, 1962. In this context discuss method of valuation on the basis of identical goods and similar goods.

June 2019Q. 6A(iii)5 marksSyllabus 2017

(iii)ABC Ltd. India imported a machine from Smith Corporation USA for inhouse use in the factory. The price of the machine as per the original agreement was 15,000 USD and the machine was shipped on 1st Jan. 2018. While the machine was in transit, ABC Ltd. India persuaded the exporter to grant a discount of 10% on the original price and the agreement was fianlised on 20th Jan. 2018. The machine reached Chennai port on 15th Feb., 2018. The assessing authorities calculated the assessable value on the basis of original price. ABC Ltd., approach you for suitable advice.

Do you agree with the action of assessing authorities ? Give reference of decided court case, if any.

December 2018Q. 961 markMCQOld syllabus

Section 51 of the CGST Act, 2017 mandates deduction of tax at source (TDS) at a specified percentage by the Government or Local Authorities from the payments made or credited to the supplier where the value of supply under a contract exceeds specified limit. State the specified percentage of TDS and the threshold limit of taxable goods or services or both under the contract .........

(A)0.50% & ₹ 1,00,000

(B)0.75% & ₹ 1,50,000

(C)2% & ₹ 5,00,000

(D)1% & ₹ 2,50,000

December 2024Q. 901 markMCQSyllabus 2017

IGM stands for :

(A)Internal General Memo

(B)International General Memo

(C)Import General Manifesto

(D)None of the above

December 2024Q. 6(d)5 marksSyllabus 2022

(d)Kapil Gems Importers imported a machine with accessories from UK. Compute the customs duty payable thereon from the following information :
(i)CIF value of machine (inclusive of accessories) UK Pound 25,000.
(ii)CIF value of accessories compulsorily supplied along with the machine (not shown separately) UK Pound 1,500.
(iii)Bill of entry filed on 02-06-2024 on this date Rate of BCD is 10%; and currency exchange rate as notified by CBIC ₹ 108 per UK Pound.
(iv)Date of entry inward 05-06-2024 on this date Rate of BCD is 12%; and currency exchange rate as notified by CBIC ₹ 110 per UK Pound.
(v)Rate of Social Welfare Surcharge (SWS) is 10%.
(vi)Integrated tax payable u/s 3(7) of the Customs Tariff Act, 1975 is 18%.
(vii)There is no GST compensation cess and other charges.

June 2024Q. 581 markMCQSyllabus 2017

The time limit under Customs Law under section 74 for duty drawback is :

(A)Within 1 year from the date of payment of duty on importation

(B)Within 2 years from the date of payment of duty on importation

(C)Within 1 year from the date of filing of bill of entry

(D)Within 2 years from the date of filing of bill of entry

June 2024Q. 6(d)5 marksSyllabus 2022

(d)Madhav Ltd imported a machinery from USA for which the payment was made in USD. The following details are furnished :

Particulars	Amount (USD)
Cost of machine at the factory of the exported country	50,000
Transport charges incurred by exporter from his factory to port for shipment	3,000
Handling charges paid for loading the machine in the ship	500
Designing charges for the machine paid in USA	9,500
Buying commission paid to the agent	22,500
Air freight charges from USA to port in India	8,000
Insurance charges could not be ascertained
RBI Exchange rate as on date of bill of entry was 1 USD = '81
CBIC Exchange rate notified as on date of bill of entry was 1 USD = '80

Find out the assessable value of the imported goods under the Customs Act, 1962 for Madhav Ltd.

December 2023Q. 5(d)5 marksSyllabus 2022

Show the facts common to all parts of Q. 5

MNO & Co, a Partnership firm, is engaged in the manufacturing of equipment in the State of Gujarat. The firm became liable for registration under GST on 14th July, 2022. It applied for registration on 14th August, 2022 and was granted registration certificate by department on 18th August, 2022.

MNO & Co. supplied goods to Vikram Ltd. The terms of the contract stipulated that goods are delivered to the factory of Vikram Ltd. Goods were removed from the factory of MNO & Co. on November 9, 2022 and were delivered to the factory of Vikram Ltd. on November 15, 2022. Invoice was issued on November 18, 2022 and payment was credited to MNO & Co’s account on December 20, 2022. However, the entry was made in the books when the cheque was received, that is on November 19, 2022.

MNO & Co, is dealing in taxable as well as exempted items. MNO & Co. has provided following information of a consignment which is to be supplied:

S. No.	Particulars	Amount (₹)
(i)	Taxable value of supplies indicated on tax invoice	28,000
(ii)	Value of exempted supplies shown separately in tax invoice in S No. (i) above	13,000
(iii)	Value of goods to be sent to job worker on delivery challan	16,000

MNO & Co. has also exported some equipment by air. The FOB price of goods exported is US $ 60000. The shipping bill was presented electronically on 17th October, 2022 and proper officer passed order permitting clearance and loading of goods for export (Let Export Order) on 29th November, 2022. The rate of exchange notified by Central Board of Indirect taxes and Customs (CBIC) on 17th October, 2022 and 29th November, 2022 are 1 US $ = ₹ 78 and 1 US $ = ₹ 77 respectively. Other details are as follows :

Particulars	Date	Rate of Duty
Presentation of shipping bill	17th October, 2022	12%
Let Export Order	29th November, 2022	10%

Based on the facts of the case scenario given above, answer the following questions with reference to GST law and Custom Law :

(d)You are required to determine the export duty payable under Customs law in respect to explored equipment.

December 2022Q. 981 markMCQSyllabus 2017

The date of determination for the rate of duty and tariff valuation of imported goods in the case of goods entered for home consumption under section 46 of Custom Act, 1962, is the .......................... .

(A)Date of presentation of bill of entry

(B)Date of entry inwards to the vessel

(C)Date of presentation of bill of entry or date of entry inwards to the vessel whichever is earlier

(D)Date of presentation of bill of entry or date of entry inwards to the vessel whichever is later

June 2022Q. 991 markMCQSyllabus 2017

The application by exporter to customs officer for clearance of goods for exportation is known as:

(A)Shipping Bill

(B)Bill of Export

(C)Bill of Lading

(D)Either (A) or (B) above

December 2021Q. 991 markMCQSyllabus 2017

The importer of goods as per section...........of the Customs Act, 1962 needs to submit duly signed “Bill of Entry” containing the details and the particulars of the goods.

(A)45

(B)46

(C)47

(D)48

December 2020Q. 981 markMCQSyllabus 2017

The custodian allows the clearance of goods from the customs area on the basis of ------------------ and where the goods are not cleared within ---------- of unloading; demurrage charges are being levied by the port authorities under the Customs Act.

(A)Out Goods Order; 5 days

(B)Out of Charge Order; 1 day

(C)Clearance Order; 2 days

(D)Out of Charge Order; 3 days

June 2026Q. 6A(iv)5 marksSyllabus 2022

(iv)Mention the names of any five ‘‘Types of Custom Duty’’ on Import Goods covered under Schedule I of Custom Tariff Act, 1975.

December 2023Q. 671 markMCQSyllabus 2017

The classification of car without tyres as car is a classification according to the principles of .............. of Interpretation Rules under the Customs Tariff Act.

(A)Rule 2

(B)Rule 3

(C)Rule 4

(D)Rule 5

December 2022Q. 961 markMCQSyllabus 2017

The rates of Basic Custom Duty are specified under..............................

(A)Custom Tariff Act, 1975

(B)Custom Act, 1962

(C)UTGST Act, 2017

(D)Central Board of Indirect Taxes and Customs (CBIC)

December 2022Q. 991 markMCQSyllabus 2017

Which of the following is not a part of Rule 3 of ‘‘Rules of Interpretation’’ of the First Schedule to Customs Tariff Act?

(A)Akin Rule

(B)Specific over General

(C)Essential character principle

(D)Latter the better

December 2021Q. 741 markMCQOld syllabus

What is the full form of HSN?

(A)Harmonized System Name

(B)Harmonized System Number

(C)Harmonized System Nomenclature

(D)Harmonized Serial Number

December 2021Q. 961 markMCQSyllabus 2017

The rates of Customs duty alongside the Classification (groups/sub-groups) are being given in the :

(A)Customs Act, 1962

(B)Customs Tariff Act, 1975

(C)Customs Manual, 2001

(D)None of the above

June 2019Q. 911 markMCQOld syllabus

Goods and Services to be supplied chargeable under the CGST Act, 2017 have been classified under different specified Code Number/s which are known as Harmonized System Nomenclature (HSN) Codes. These HSN codes have been evolved and developed by :

(A)GST Council

(B)HSN/SAC Codes Committee

(C)Customs Cooperation Council of Belgium

(D)None of the above

December 2018Q. 4(d)4 marksSyllabus 2017

(d)State the legal position under the Customs Act, 1962 in respect of the following:

(i)Penalty for import of unaccounted goods;

(ii)Time limit for filing application for refund of import duty;

(iii)Criminal liability by way of maximum imprisonment for offences;

(iv)Akin principle.

June 2025Q. 6(c)5 marksSyllabus 2022

( c )Ravindra Rao, a registered person in Indore, Madhya Pradesh has provided the following information regarding outward transactions made during the month of January, 2025 :

S. No.	Particulars
1.	He was appointed by recognized sports body as a chief selector of Basket Ball team and received ₹ 6,00,000 as remuneration.
2.	Services of pure labor contract was provided for construction of independent residential unit for ₹ 2,80,000.
3.	He rented out his warehouse for warehousing of wheat and received rental income of ₹ 1,75,000.
4.	Provided services to Municipal Corporation of Indore for slum improvement and upgradation for ₹ 7,50,000.
5.	He has charged consideration of ₹ 2,25,000 against Western Music dance performance in an event.

You are required to compute the taxable value of supply on which GST is to be paid by Mr. Ravindra Rao for the month of January, 2025. All the amount stated above are exclusive of GST, wherever applicable. Suitable Notes should form part of answer.

December 2024Q. 761 markMCQSyllabus 2017

Which of the following supply of services are exempt under GST ?
(i)Testing of agricultural produce
(ii)Supply of farm labour
(iii)Warehousing of agricultural produce
(A)(i)
(B)(i) and (ii)
(C)(ii) and (iii)
(D)(i), (ii) and (iii)

June 2024Q. 891 markMCQSyllabus 2017

‘Q’ Ltd. has its registered office, under the Companies Act, 2013, in the State of Maharashtra from where it ordinarily carries on its business of taxable goods. It also has a warehouse in the State of Telangana for storing said goods. What will be the place of business of ‘Q’ Ltd. under the GST law ?

(A)Telangana

(B)Maharashtra

(C)Both (A) and (B)

(D)Neither (A) nor (B)

June 2024Q. 6A(iv)5 marksSyllabus 2022

(iv)State with reasons, whether the following statements are true or false, under Customs Act, 1962 :

(a)Customs area include warehouse.

(b)Customs station does not include international courier terminal.

June 2023Q. 591 markMCQSyllabus 2017

X & Co. supplied goods of Y Ltd. as per the contract for the goods to be supplied. The goods were removed from the warehouse of X & Co. on 20th September, 2022 and were delivered to Y Ltd. on 1st October, 2022. The invoice was issued on 10th October 2022 and the payment was credited to the bank account of X & Co. on 20th October, 2022. What is the time of supply?

(A)20th September, 2022

(B)1st October, 2022

(C)10th October, 2022

(D)20th October, 2022

June 2023Q. 861 markMCQSyllabus 2017

Priya Co. Ltd. imported goods from a foreign country and the goods were kept in the private warehouse licensed under section 58 of the Customs Act, 1962. What is the time period to keep the goods in warehouse without payment of duty?

(A)5 years

(B)3 years

(C)1 year

(D)6 months

June 2022Q. 971 markMCQSyllabus 2017

Which amongst the following is not true about private bonded warehouse:

(A)Owned and managed by private entities

(B)Availability of space certificate from warehouse keeper would be required

(C)Only dutiable goods can be warehoused

(D)Not generally allowed where the public bonded warehouses are available

December 2021Q. 851 markMCQSyllabus 2017

Services provided by way of warehousing of certain specified goods are exempt under CGST Act, 2017. Find out from the following which in this context are exempt :
(i)Processed Tea
(ii)Jaggery
(iii)Processed Coffee
(iv)Unbranded Besan
(A)(i) and (iii)
(B)(ii)
(C)(iv)
(D)All of the above

June 2021Q. 921 markMCQSyllabus 2017

Albert Co. Ltd, Chennai imported machinery from Germany for its unit located in EOU. The machine reached Chennai Port on 20.02.2021. The undertaking has deferred manufacture of article for which the machinery was originally imported. What is the time period up to which the machinery can be kept in the warehouse at port without payment of customs duty ?

(A)6 months

(B)1 year

(C)3 years

(D)5 years

December 2020Q. 991 markMCQSyllabus 2017

A conveyance/vessel may reach a port but may not unload the goods at that port. Such a phenomenon of temporary stay at a port other than the destination port where the goods remain in the same vessel under the Customs Act is termed as---------------.

(A)Transportation

(B)Warehousing

(C)Transit

(D)Transhipment

December 2023Q. 991 markMCQSyllabus 2017

The important purpose of implementation of the Customs Act is to :

(A)Regulate levy and collection of customs duty

(B)Regulating Imports and Exports

(C)Conservation and augmentation of foreign exchange

(D)All the above

December 2023Q. 1001 markMCQSyllabus 2017

Goods for customs duty levy which cannot be classified in accordance with Rules 1, 2 or 3 shall be classified under :

(A)Character principle

(B)Latter and Better principle

(C)Akin principle

(D)Closest principle

June 2023Q. 811 markMCQSyllabus 2017

FG Co. Ltd. imported goods and paid customs duty earlier. In which of the following situation it can seek refund of import duty paid by it?

(A)When the goods are defective

(B)When the goods are destroyed in the presence of proper officer

(C)The goods are exported back

(D)All the above

June 2022Q. 961 markMCQSyllabus 2017

For refund of import duty paid, the refund application must be filed:

(A)Within 2 years from the date of payment of duty

(B)Within 6 months from the date of import

(C)Within 1 year from the date of payment of duty

(D)Within 1 year from the date of import

December 2021Q. 981 markMCQSyllabus 2017

Find from the following list which are to be treated as Port under the provisions of the Customs Act, 1962 :
(i)Sea Port
(ii)Inland Railway Depot
(iii)Inland Container Depot
(iv)Airport
(v)Container Freight Stations not attached to Port
(A)(i), (ii) and (iii)
(B)(i), (ii), (iii) and (v)
(C)(i), (iii) and (iv)
(D)(i), (ii), (iii), (iv) and (v)

June 2021Q. 941 markMCQSyllabus 2017

Geo Ltd, Ahmedabad exported its machinery to EXE Co. Inc. of UK. It paid export duty of ₹ 21 lakhs. After using them for 12 months it was returned by Exe Inc. UK to Geo Ltd. How much Geo Ltd. is eligible for refund of export duty paid earlier ?

(A)₹ 5,25,000 (25%)

(B)₹ 10,50,000 (50%)

(C)₹ 21,00,000 (100%)

(D)NIL

December 2020Q. 961 markMCQSyllabus 2017

Ascertain the assessable value in USD of the consignment of machine imported in India from US on the basis of information/ particulars given below ------------- ---.
(i)Cost of Machine at the factory of the US Exporter $ 17500
(ii)Transport charge from the factory to the sea port $ 2500
(iii)Handling charges at the Port of Shipment $ 200
(iv)Buying Commission paid by Importer $ 50
(v)Freight Charges until the Indian Port $ 2500
(A)$ 20,250
(B)$ 22,750
(C)$ 22,927
(D)$ 22,977

December 2019Q. 971 markMCQSyllabus 2017

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

(A)Land Station

(B)Land Customs Stations (LCS)

(C)Container Freight Stations (CFS) not attached to Port

(D)None of the above

December 2018Q. 6(e)3 marksSyllabus 2017

(e)Explain the meaning as being assigned under the Customs Act, 1962 to the term “Foreign going Vessel/Aircraft”.

June 2023Q. 901 markMCQSyllabus 2017

The drawback allowed for goods if returned after using of goods more than 12 months but less than 15 months is:

(A)76%

(B)75%

(C)60%

(D)65%

December 2022Q. 1001 markMCQSyllabus 2017

Javed imported computers for his office use and paid ₹ 4,00,000 as import duty. The computers are re-exported after being use of 13 months. The amount of allowed Duty Drawback under Custom Laws is:

(A)No Drawback

(B)₹ 4,00,000

(C)₹ 2,80,000

(D)₹ 2,60,000

June 2022Q. 981 markMCQSyllabus 2017

Determine the rate of drawback, if period between date of clearance for home consumption and the date when the goods are placed under Customer Control for export more than 6 months but not more than 9 months:

(A)95%

(B)85%

(C)75%

(D)65%

December 2021Q. 1001 markMCQSyllabus 2017

An application for refund of import duty paid under the Customs Act, 1962 where the goods are found to be defective or not in conformity with the specification; importer does not claim any duty drawback and relinquishes his title to the goods is to be filed within .................... from the relevant date.

(A)6 Months

(B)3 Months

(C)2 Months

(D)1 Year

June 2021Q. 971 markMCQSyllabus 2017

Beyond what time if the Duty drawback is not refunded, it becomes eligible for interest ?

(A)Within 1 month

(B)Within 3 months

(C)Within 6 months

(D)Within 12 months

December 2020Q. 1001 markMCQSyllabus 2017

Duty Drawback under section 74 of the Customs Act, 1962 is admissible where the imported goods are not put to use after its import at the rate of ----

(A)85%

(B)90%

(C)95%

(D)98%

December 2019Q. 981 markMCQSyllabus 2017

Duty Drawback under the Customs Act, 1962 shall be allowed on the imported goods, where such imported goods are being used for a period of eight months before the same were re-exported @ .................... .

(A)85%

(B)70%

(C)60%

(D)40%

June 2022Q. 791 markMCQSyllabus 2017

Assessable Value (A. V.) = ₹ 6 lakh
(i)BCD – 10%
(ii)IGST – 12%
(iii)Social Welfare Surcharge @ 10% Calculate the total amount of duties and taxes :
(A)₹ 1,38,000
(B)₹ 1,45,920
(C)₹ 1,45,200
(D)₹ 1,53,120

June 2021Q. 981 markMCQSyllabus 2017

What is the rate of social welfare surcharge which is levied on Basic Customs Duty ?

(A)10%

(B)20%

(C)30%

(D)5%

December 2019Q. 961 markMCQSyllabus 2017

Section 110 of Finance Act, 2018 w.e.f. 2nd February, 2018 have levied ................. on imported goods which is a duty of customs levied for the purpose of the union on the goods specified in the first schedule with the Customs Performing Act, 1975 being goods imported into India.

(A)Anti Dumping Duty

(B)Paid Command Duty

(C)IGST and GST Compensation Cess

(D)Social Welfare Surcharge

June 2019Q. 5(a)3 marksSyllabus 2017

(a)Explain briefly safeguard duty levied under Customs Act, 1962.

June 2019Q. 5(d)3 marksSyllabus 2017

(d)Write a short note on social welfare surcharge under Customs Act 1962.

June 2019Q. 5(e)3 marksSyllabus 2017

(e)Distinguish between Basic custom duty and Additional custom duty or Countervailing duty.

June 2021Q. 931 markMCQSyllabus 2017

Beta Ltd, Mumbai imported machinery from Denmark. After using the machinery for 16 months, it was sold to Gama Inc. Canada. How much of the custom duty paid is eligible for refund to Beta Ltd ?

(A)85%

(B)75%

(C)60%

(D)50%

June 2021Q. 951 markMCQSyllabus 2017

Which of the following imported goods is not liable for confiscation ?

(A)Prohibited goods found concealed in conveyance

(B)Dutiable goods removed from customs station, without permission

(C)Goods imported by sea off-loaded in an appointed Customs Port

(D)Goods imported by land through a route other than a specified route

June 2023Q. 561 markMCQSyllabus 2017

How much a male passenger residing abroad for the last 3 years could bring gold jewellery under dutyfree baggage allowance under the Customs Act, 1962?

(A)20 grams

(B)20 grams with a value cap of ₹ 50,000

(C)40 grams

(D)40 grams with a value c ap of ₹ 1, 00,000

Particulars	Amount (UK Pounds)
FOB cost of Machine	20,000
Add: License fee relating to imported goods payable by the buyer as a condition of sale (20% on 20,000 UKP)	4,000
	24,000
	Value in (₹)
Sub-Total (24,000 UKP x ₹ 90) As per explanation to section 14(1) of the customs act, 1962, assessable value should be calculated with reference to the rate of exchange notified by the CBIC.	21,60,000
Add: Commission paid to a local agent in India	15,000
FOB value as per customs	21,75,000
Add: Air Freight (since air freight is ascertainable and is lower than 20% of FOB value, actual sum to be considered. [3000 x 90 = ₹ 2,70,000)	2,70,000
Add: Insurance paid to the insurer in India	28,000
CIF Value / Assessable Value	24,73,000

Particulars	Amount (Rs.)
Assessable Value will be the CIF Value (US$ 8,000 x Rs.79)	6,32,000
Less: Cost of Insurance (Rs. 6,32,000/121.125 x 1.125) (Roundoff)	5,870
Less: Cost of Freight (Rs. 6,32,000/121.125 x 20) (Roundoff)	1,04,355
FOB Value	5,21,775

Particulars	Amount (Rs.)
CIF value of machine (inclusive of accessories)	UK Pound 25,000
Assessable Value in Indian currency (currency exchange rate is taken on the date of bill of entry, i.e. 1 UK Pound = 108) (25,000 x 108)	27,00,000
Add: Basic Custom Duty (Rate of duty is taken on bill of entry or entry inward whichever is later) @ 12% of Rs. 27,00,000	3,24,000
Add: Social welfare surcharge @ 10% on basic custom duty (10% of Rs. 3,24,000)	32,400
Total	30,56,400
Add: IGST @ 18% of Rs. 30,56,400	5,50,152
Total Amount Payable	36,06,552
Total Duty Payable (Rs. 3,24,000 + Rs. 32,400 + Rs. 5,50,152)	9,06,552

Particulars	Amount (USD)
Cost of machine at the factory of the exported country	50,000.00
Transport charges incurred by exporter from his factory to port for shipment	3,000.00
Handling charges paid for loading the machine in the ship	500.00
Design charges for the machine	9,500.00
FOB Value	63,000.00
Buying commission paid to the agent - not includible	-
Freight charges from foreign country to port in India	8,000.00
Insurance charges @ 1.125% of FOB (63,000 x 1.125%)	708.75
CIF value / assessable value in USD	71,708.75
Assessable value in Indian Currency (CBIC Exchange rate is taken on the date of bill of entry for Import duty purpose) (71,708.75 x Rs. 80)	Rs. 57,36,700

FOB price of goods (Note-1)	US $ 60,000
Assessable Value (US$ 60,000 x Rs.78) (Note-2)	Rs. 46,80,000
Export duty @ 10% (Note-3)	Rs. 4,68,000

Particulars	Amount (₹)
Remuneration received as a chief selector of Basket Ball team. [Taxable since services provided to a recognized sports body by an individual only as a player, referee, umpire, coach or team manager are exempt.]	6,00,000
Service of pure labor contract for construction of independent residential unit [Services of pure labor contracts of construction of original works pertaining to a single residential unit otherwise than as a part of a residential complex are exempt.]	NIL
Rental income from warehousing of wheat [Warehousing of wheat being an agricultural produce is exempt.]	NIL
Services to Municipal Corporation of Indore for slum improvement and upgradation* [Services provided to a Local Authority by way of slum improvement and upgradation are exempt.]	NIL
Consideration received against Western Music dance performance in an event [Taxable, since the amount received for Western Music dance performance but the exemption is available for performance in folk or classical art forms of music or dance. if the consideration charged for such performance is not more than Rs. 1,50,000.]	2,25,000
Total Value of taxable supply on which GST is to be paid	8,25,000

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