Going through the Overview of Customs Act – CS Executive Tax Laws MCQ Questions with Answers you can quickly revise the concepts.
Overview of Customs Act – Tax Laws CS Executive MCQs
Question 1.
The Customs Act, 1962 has consolidated the law on subject of import and export duties, which were earlier contained in enactment:
(a) Sea customs Act, 1878
(b) In-land Bounded Warehousing Act, 1896
(c) Land Custom Act, 1924
(d) All of the above
Answer:
(d) All of the above
Question 2.
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
Answer:
(b) Land Customs Stations (LCS)
Question 3.
Central board of Indirect taxes and customs (CBIC) has been constituted under which of the following Act:
(a) Central Board of Revenue Act, 1963
(b) Constitution of India
(c) Companies Act
(d) None of the above
Answer:
(a) Central Board of Revenue Act, 1963
Question 4.
There are certain executive duties performed by the officers of customs like boarding and checking ships and aircrafts, clearing passengers and crew and their baggage, supervision and control over loading and unloading of cargo, etc. The officers performing these functions are called as:
(a) Appraisers officers
(b) Preventive officers
(c) Ministerial officers
(d) Executive officers
Answer:
(b) Preventive officers
Question 5.
Which one of the following is included in the category of major ports of India
(a) Mumbai (Maharashtra)
(b) Kandla (Gujarat)
(c) Mormugao
(d) All of the above
Answer:
(d) All of the above
Question 5A.
The lower watermark along the coast is called as………..
(a) Coastline
(b) Baseline
(c) Economic line
(d) None of these
Answer:
(b) Baseline
Question 5B.
Indian customs waters extend ………
(a) up to 12 nautical miles
(b) up to 24 nautical miles
(c) up to exclusive economic zone of India
(d) None of these
Answer:
(c) up to exclusive economic zone of India
Question 6.
Which one of the following has been de¬clared as a major port w.e.f. June 01,2010.
(a) Port Blair
(b) Kandla
(c) Mumbai
(d) Mormugao (Goa)
Answer:
(a) Port Blair
Question 7.
Who appoints officers of the customs as per section 4( 1) of the Customs Act, 1962?
(a) CBIC
(b) CBEC
(c) Central Government
(d) CBDT
Answer:
(a) CBIC
Question 8.
If board authorizes, then the custom officers below the rank of Assistant Commissioner of customs may be appointed by:
(a) Principal Chief Commissioner of Customs
(b) Chief Commissioner of Custom
(c) Joint Commissioner of Customs
(d) Any of the above.
Answer:
(d) Any of the above.
Question 9.
Indian Customs Waters cover
(a) Indian Territorial Waters
(b) Exclusive Economic Zone
(c) Both (a) & (b)
(d) None of the above
Answer:
(c) Both (a) & (b)
Question 10.
The sequential stage of imposition of taxes and duties are:
(a) Levy, Assessment and Collection
(b) Assessment, levy and Collection
(c) Collection, Assessment and Levy
(d) Levy, Collection and Assessment
Answer:
(a) Levy, Assessment and Collection
Question 11.
Which one of the following is the final stage of imposition of taxes and duties
(a) Levy
(b) Assessment
(c) Collection
(d) Any of the above
Answer:
(c) Collection
Question 12.
The procedure of quantifying the amount of liability is called as
(a) Levy
(b) Assessment
(c) Collection
(d) None of the above
Answer:
(d) None of the above
Question 13.
The customs duty is considered to be levied on
(a) Goods imported
(b) Person importing the goods
(c) Person paying the duty
(d) All of the above
Answer:
(a) Goods imported
Question 14.
Which of the following imports is/are exempt from custom duty ?
(a) By Indian Navy
(b) By Ministry of Defence
(c) By Coastal Guard
(d) By all of the above
Answer:
(d) By all of the above
Question 15.
In the absence of any notification, Government goods shall be with non-Government goods for the purposes of levy of customs duty:
(a) Treated at par
(b) Exempted as compared
(c) Given abatement in customs duty as compared
(d) None of the above
Answer:
(a) Treated at par
Question 16.
………. refers to any cargo, vessel, etc. abandoned in the sea with no hope of recovery
(a) Jetsam
(b) Derelict
(c) Flotsam
(d) Wreck
Answer:
(d) Wreck
Question 17.
…………… refers to goods jettisoned from the vessel to save her from sinking.
(a) Jetsam
(b) Derelict
(c) Flotsam
(d) None of the above.
Answer:
(a) Jetsam
Question 18.
When goods are cleared from DTA to Special Economic Zone, they are:
(a) Chargeable to export duty under the SEZ Act, 2005.
(b) Chargeable to export duty under Customs Act, 1962.
(c) Chargeable to import duty under either of SEZ Act and Customs Act.
(d) Not chargeable to export duty.
Answer:
(d) Not chargeable to export duty.
Question 19.
The Government has issued notification on 2nd November and it was published in Official Gazette on 4th November. With reference to section 25 of the Customs Act, 1962, this notification will be effective from:
(a) 2nd November
(b) 4th November
(c) Earlier of date of notification or publication.
(d) 2 days after the date of publication.
Answer:
(a) 2nd November
Question 20.
With reference to judicial decision in the case “M J Exports v. CCE”, PUBLIC INTEREST means an act:
(a) Beneficial to a particular Industry.
(b) Beneficial to General Public.
(c) Beneficial to Revenue Department.
(d) Beneficial to Specific public.
Answer:
(b) Beneficial to General Public.
Question 21.
The power of the Central Government to alter the duty rate structure is known as ……………….
(a) Delegated Legislation.
(b) Interpreted Legislation.
(c) Over riding Legislation.
(d) Modify Legislation.
Answer:
(a) Delegated Legislation.
Question 22.
The delegated legislation power of the Central Government is always:
(a) Subject to superintendence.
(b) Check by Parliament.
(c) Both (a) and (b)
(d) Both (a) and (b) and approval of general public.
Answer:
(c) Both (a) and (b)
Question 23.
The exemption may be granted by the Central Government as a discretionary provision for:
(a) Controlling the economy.
(b) Industrial growth of the economy.
(c) Both (a) and (b).
(d) Any purpose.
Answer:
(c) Both (a) and (b).
Question 24.
Consider the following:
| Value of Goods |
₹ 10,000 |
| Value of goods after damage |
₹ 2,000 |
| Duty payable of original value |
₹ 3,098 |
What will be the amount of duty chargeable after abatement?
(a) 20% of ₹ 3,098
(b) 80% of ₹ 3,098
(c) ₹ 3,098
(d) 2000
Answer:
(a) 20% of ₹ 3,098
Question 25.
With reference to section 13, Pilferage of goods means:
(a) Theft in small quantity.
(b) Theft in large quantity.
(c) Theft in any quantity.
(d) Theft, when expressed in quantity and not in value.
Answer:
(a) Theft in small quantity.
Question 26.
When the goods are deposited in the warehouse, the collection of duty of customs will be:
(a) Collected immediately.
(b) Deferred till such goods are deposited in warehouse.
(c) Deferred till such goods are cleared Home Consumption.
(d) Deferred forever.
Answer:
(c) Deferred till such goods are cleared Home Consumption.
Question 27.
When the goods are deposited in the warehouse, the importer is required to execute a bond binding himself in a sun equal to the amount of duty assessed at the time of import.
(a) 50%
(b) 60%
(c) 90%
(d) 200%
Answer:
(d) 200%
Question 28.
The Basic Customs Duty is levied under the provisions types of Date:
(a) Section 12 of the Customs Act, 1962
(b) Section 2 of the Custom Tariff Act, 1975
(c) Both (a) and (b)
(d) None of the above
Answer:
(c) Both (a) and (b)
Question 29.
Which of the following is not a condition to be fulfilled by the importer to make the imported goods eligible for preferential rate of Duty
(a) Specific claim to be made at the time of importation.
(b) The area should be notified under section 4(3) of the Custom Tariff Act to be a “preferential area”.
(c) The goods are manufactured or produced in preferential area.
(d) The goods are chargeable at standard rate in the exporting country
Answer:
(d) The goods are chargeable at standard rate in the exporting country
Question 30.
The Integrated Tax under section 3(7) of the Custom Tariff Act is levied
(a) In addition to any other Duty
(b) When BCD is not applicable
(c) When Safeguard Duty is applicable
(d) When any article is exported out of India.
Answer:
(a) In addition to any other Duty
Question 31.
GST Compensation Cess is a “Compensation Cess” levied under section 8 of the GST (Compensation to state) Act, 2017. It is levied on:
(a) Intra-state supply of goods or services
(b) Inter-State supply of goods or service
(c) Both (a) and (b)
(d) Intra/inter-state supply of those articles which have been notified by Central Government.
Answer:
(d) Intra/inter-state supply of those articles which have been notified by Central Government.
Question 31A.
The collection of customs duty will be deferred, when the goods are
(a) Clearance for home consumption
(b) Deposited in the warehouse
(c) Both (a) and (b)
(d) None of these
Answer:
(b) Deposited in the warehouse
Question 31B.
Anti-Dumping duty is calculated as
(a) Higher of margin of dumping or injury margin;
(b) Lower of margin of d umping or injury margin;
(c) Higher of export price or normal value;
(d) Lower of export price or normal value.
Answer:
(b) Lower of margin of d umping or injury margin;
Question 32.
The goods/ services at which GST Compensation Cess is applicable, are notified by:
(a) Central Government
(b) CBIC
(c) GST Council
(d) State Government.
Answer:
(a) Central Government
Question 33.
Which of the following Tax/Cess would not be included while computing the assess¬able value for computation of Integrated Tax and GST Compensation Cess
(a) Tax under section 3(7) of Custom Tariff Act
(b) Tax under section 3(9) of the Custom Tariff Act.
(c) Both (a) and (b)
(d) Basic Custom Duty
Answer:
(c) Both (a) and (b)
Question 34.
The Customs Duties are
(a) Revenue Duties
(b) Protective Duties
(c) Both (a) and (b)
(d) National Duties
Answer:
(c) Both (a) and (b)
Question 35.
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
Answer:
(d) Social Welfare Surcharge
Question 35A.
In which of the following cases, can an importer claim abatement of duty under section 22 of Customs Act.
(a) Goods pilfered during unloading
(b) Goods damaged by accident (due to negligence of the importer) after unloading but before examination for assessment by customs authorities
(c) Goods destroyed by accident while in warehouse
(d) Goods damaged by accident (not due to negligence of the importer) after unloading but before examination for assessment by customs authorities.
Answer:
(a) Goods pilfered during unloading
Question 36.
In summer season the, production of milk has become low exceptionally. The requirements of the people are not fulfilled. The Government desires to discourage stop the export of milk power. Who is empowered to impose or enhance export Duties in this regard₹
(a) Central Govt, under section 8 of Custom Tariff Act, 1975
(b) Central Govt, under section 8 of Customs Act, 1962
(c) Central Govt, under section 8A of Custom Tariff Act, 1975
(d) The chairman of CBIC.
Answer:
(a) Central Govt, under section 8 of Custom Tariff Act, 1975
Question 37.
Which of the following statements is are correct about emergency power of Central Government under section 8A of the Custom Tariff Act, 1975
(i) The goods should be specified in the first Schedule
(ii) The goods may or may not be specified in first Schedule.
(iii) Central Govt, is satisfied that circumstance exist, which render it necessary for the enhancement of import Duties.
(iv) Recommendation of DGFT is made:
(a) i, iii and iv
(b) ii, iii and iv
(c) i and iii
(d) ii and iv
Answer:
(c) i and iii
Question 38.
Which of the following statement is not correct for Protective Duties
(a) The Protective Duties are levied by the Centred Government.
(b) The recommendation of Tariff Commission is required for such levy of protective Duties
(c) In case of any increase in Duty, the Central Government is required to place such notification in the parliament for approval.
(d) Such approval is also required for decrease in Duty.
Answer:
(d) Such approval is also required for decrease in Duty.
Question 39.
The difference between emergency power under sections 8 and 8A of Custom Tariff Act is/are:
(a) Section 8 is related with export Duties whereas section 8A is related with import Duties.
(b) Section 8 does not require the item to be specified in the Second Schedule whereas goods should be specified in First Schedule for section 8A.
(c) Both (a) and (b)
(d) None of the above
Answer:
(c) Both (a) and (b)
Question 40.
Which of the following is NOT TRUE about Anti-Dumping Duty
(a) This Duty is country specific.
(b) Under GATT provisions, Anti-Dumping Duties can be higher than Margin of Dumping.
(c) The Anti-Dumping Duty is in ad-dition to any other Duty imposed under Custom Tariff Act, 1975.
(d) It is imposed tariff by Central Government by notification in the official Gazette.
Answer:
(b) Under GATT provisions, Anti-Dumping Duties can be higher than Margin of Dumping.
Question 41.
The comparable price, in ordinary course of trade, for the like article, when destined for consumption in the exporting country or territory is called as.
(a) Normal Value
(b) Common Value
(c) Export Price
(d) Import Price
Answer:
(a) Normal Value
Question 42.
The Anti-Dumping Duty u/s 9A of the Custom Tariff Act is:
(a) Lower of Margin of Dumping and Injury Margin
(b) Higher of Margin of Dumping and Injury Margin
(c) Aggregate of Margin of Dumping and Injury Margin
(d) Margin of Dumping minus Injury Margin.
Answer:
(a) Lower of Margin of Dumping and Injury Margin
Question 43.
“Zubiro Ltd.” is a 100% EOU engaged in manufacturing of product X. Zubiro Ltd. imported goods from a country which is covered by a notification issued under section 9A of the Tariff Act, 1975. This imported article has been used by the company in the manufacture of product X. The 20% of this product was cleared into the DTA and balance was duly exported. The Anti-Dumping Duty on total imported goods is ₹ 2, 50,000. What is the amount of ADD payable by Zubiro Limited (100% EOU):?
(a) Nil, since it is the case of 100% EOU
(b) ₹ 2,50,000
(c) 20% of ₹ 2,50,000
(d) 80% of ₹ 2,50,000
Answer:
(c) 20% of ₹ 2,50,000
Question 44.
With effect from 2-2-2018, all goods imported into India have been exempted from EC and SHEC. In place of this, which has/have been introduced:
(a) Social Welfare Surcharge
(b) Road and Infra Structure Cess
(c) Both (a) and (b)
(d) None of the above
Answer:
(a) Social Welfare Surcharge
Question 45.
The Social Welfare Surcharge leviable on Integrated Tax is:
(a) Exempted
(b) Applicable
(c) Party exempted
(d) Not applicable
Answer:
(a) Exempted
Question 46.
The Social Welfare Surcharge has been levied for providing and financing:
(a) Education
(b) Education and Health
(c) Education, Health and Social Security
(d) Social Security only
Answer:
(c) Education, Health and Social Security
Question 47.
Which one of the following is not correct about Safeguard Duty levied under section 8B of Custom tariff Act, 1975
(a) The total period of levy of Safeguard Duty is restricted to 10 years.
(b) The provisional Safeguard Duty cannot remain in force for more than 200 days.
(c) It cannot be imposed if the import of such article from developing country does not exceed 3% of the total imports of that article into India.
(d) Where the articles is originating from more than one developing Country (each with less than 3%) and aggregate does not exceed 10% total import, then this duty cannot be imposed.
Answer:
(d) Where the articles is originating from more than one developing Country (each with less than 3%) and aggregate does not exceed 10% total import, then this duty cannot be imposed.
Question 48.
The Assessable Value of imported goods is ₹ 8,00,000. The Basic Custom Duty is 10% with IGST u/s 3(7) at 12% and Social Welfare Surcharge at 10% Calculate the total Customs Duty.
(a) ₹ 9,85,600
(b) ₹ 9,94,560
(c) ₹ 1,94,560
(d) None of the above
Answer:
(c) ₹ 1,94,560
Question 49.
The following information is available:
| Assessable value |
₹ 24,00,000 |
| BCD |
10% |
| IGST u/s 3(7) |
12% |
| GST compensation. Cess u/s 3(9) |
15% |
| Social Welfare Surcharge |
10% |
The amount of Social Welfare Surcharge and Landed Value are:
(a) ₹ 24,000 and ₹ 33,83,280
(b) ₹ 2,40,000 and ₹ 33,83,280
(c) ₹ 24,000 and ₹ 26,64,000
(d) None of the above
Answer:
(a) ₹ 24,000 and ₹ 33,83,280
Question 50.
The import of Sodium Nitrite from a developing country from 26th February, 2018 to 25th February, 2019 is 4%. The assessable value of product imported is ₹ 40, 00,000. The Safeguard Duty (@ 30%) as per section 8B of Custom Tariff Act shall be:
(a) Nil, as it is not leviable in this case.
(b) ₹ 12,00,000
(c) ₹ 12,00,000 + 10% Social Welfare Surcharge
(d) ₹ 1,60,000 (Being 4% of ₹ 40,00,000)
Answer:
(b) ₹ 12,00,000
Question 51.
The value determined under section 3(8) is ₹ 28,44,930. What is the Assessable Value if BCD and Social Welfare Surcharge are 10% each?
(a) ₹25, 63,000
(b) 125, 86,300
(c) ₹ 23,70,775
(d) None of the above
Answer:
(a) ₹25, 63,000
Assessable Value = ₹ 28,44,930 × \(\frac{100}{111}\) = ₹25,63,000
Question 52.
The landed cost of goods (4,000 kgs) imported by X limited is ₹ 3,28,000. The Anti-Dumping Duty will be equal to difference between amount calculated @ ₹ 90 per kg. and landed value of goods. The amount of Anti-Dumping Duty is:
(a) ₹ 32,000
(b) ₹ 3,60,000
(c) ₹ 3,28,000
(d) ₹ 40,000
Answer:
(a) ₹ 32,000
ADD = (4000 × 90) – ₹ 3,28,000 = ₹32,000
Question 53.
In accordance with section 111 of Finance Act, 2018, Road and Infrastructure Cess is levied as Duty of Customs @ on motor spirit and High Speed Diesel.
(a) ₹ 20 per litre
(b) ₹ 8 per litre
(c) ₹ 25 per litre
(d) Nil rate
Answer:
(b) ₹ 8 per litre
Question 54.
The Safeguard Duty is calculated at ₹ 7,20,000. If Social Welfare Surcharge is 10% and assessable value is ₹ 24,00,000, The Value of Social Welfare Surcharge on Safeguard Duty will be:
(a) Nil
(b) ₹ 72,000
(c) ₹ 2,40,000
(d) 10% of aggregate of Assessable Value & Safeguard Duty.
Answer:
(a) Nil
Question 55.
The Social Welfare Surcharge is
(a) 10% on IGST
(b) 10% on GST Compensation Cess
(c) 10% on aggregate of IGST & Compensation Cess
(d) Presently Exempt on IGST & Compensation Cess
Answer:
(d) Presently Exempt on IGST & Compensation Cess
Question 56.
………. consists of determining the heading or sub-heading of the Customs Tariff under which the said goods are covered.
(a) Entry
(b) Classification
(c) Schedule
(d) Tariff schedule
Answer:
(b) Classification
Question 57.
The classification of goods is required in Customs due to:
(a) Determination of rate of duty
(b) Determination of eligibility of exemption
(c) Both (a) & (b)
(d) None of the above.
Answer:
(c) Both (a) & (b)
Question 58.
The relevant time for classification is:
(a) The time of importation
(b) The time of exportation
(c) Both (a) or (b)
(d) None of the above
Answer:
(c) Both (a) or (b)
Question 59.
The First Schedule in the Customs Tariff Act, 1975 comprises of:
(a) 89 Chapters grouped under 21 sections
(b) 98 Chapters grouped under 21 sections
(c) 90 Chapters grouped under 12 sections
(d) None of the above
Answer:
(b) 98 Chapters grouped under 21 sections
Question 60.
In order to give clear direction as to how the nomenclature in the schedule is to be interpreted and to give statutory force, which one of the following is the integral part of Schedule I of Customs Tariff Act?
(a) Rule of interpretation
(b) General explanatory Notes
(c) Summary of provisions
(d) Both (a) & (b)
Answer:
(d) Both (a) & (b)
Question 61.
The Indian Customs Tariff is based upon the Harmonized System of Nomenclature. This system has been developed and maintained by:
(a) World Customs Council
(b) World Customs Organization
(c) CBIC
(d) None of the above
Answer:
(b) World Customs Organization
Question 62.
As regards the First Schedule of the Customs Tariff, are mentioned at the beginning of each chapter and are the part of the statute. It has the legal authority in determining the classification of goods.
(a) Chapter Notes
(b) Section Notes
(c) Chapter Summary
(d) Section Summary
Answer:
(a) Chapter Notes
Question 63.
How many General explanatory Notes have been included in the First Schedule of Customs Tariff Act, 1975?
(a) Two
(b) Three
(c) Four
(d) Five
Answer:
(b) Three
Question 64.
With reference to General Explanatory Notes of the Customs Tariff Act, 1975, ……… denotes that the said article or group of articles shall be taken to be sub-classification of the articles or group of article covered by the said heading:
(a) Single dash
(b) One dash
(c) Two dash
(d) Three dash
Answer:
(b) One dash
Question 65.
The entry 0801 in tariff item is related with coconuts, Brazil nuts and cashew nuts. Under the column description of goods, “Coconuts reflects:
(a) Sub-classification of coconuts
(b) Classification of heading of tariff item
(c) Both (a) and (b)
(d) Any of (a) and (b)
Answer:
(b) Classification of heading of tariff item
Question 66.
Which one of the following is/are included in the General Explanatory Notes given in First Schedule:
(a) Relevance of one dash & two dash
(b) Meaning of abbreviation “%” in relation to the rate of duty
(c) Standard rate of duty applicable, if no preferential rate specified
(d) All of the above
Answer:
(d) All of the above
Question 67.
Under Customs, the standard unit of quantity has been prescribed in
(a) Column 3 of First Schedule to Customs Tariff Act
( b) Column 3 of First Schedule to Custom Act.
(c) Column 4 of First Schedule to Customs Tariff Act.
(d) Column 4 of First Schedule to Customs Act.
Answer:
(a) Column 3 of First Schedule to Customs Tariff Act
Question 68.
The unit of measure prescribed in column 3 of the First Schedule to the Customs Tariff is indicated by ……….
(a) Words
(b) Symbols
(c) Abbreviations
(d) All of the above
Answer:
(c) Abbreviations
Question 69.
How many rules of interpretation are given in the First Schedule to the Customs Tariff Act?
(a) Two
(b) Four
(c) Six
(d) Nine
Answer:
(c) Six
Question 70.
Railway coaches removed without seats would still be classified as railway coaches. This classification is as per …………..
of rules of interpretation of the First Schedule to the Customs Tariff Act.
(a) Rule 2(a)
(b) Rule 2(b)
(c) Rule 3(a)
(d) Rule 3(b)
Answer:
(a) Rule 2(a)
Question 70A.
Electric shaving machine is classifiable under following:
8510: Shavers and hair clippers with self-contained electric motors;
8509: Electro mechanical domestic appliances with self-contained electric motor As per rules of classification, electric shaving machine should be classifiable under
(a) 8510
(b) 8509
(c) More information is needed
(d) Can be classified under both
Answer:
(a) 8510
Question 71.
The classification of goods consisting of more than one material or substance shall be according to the principles of ……….
(a) Rule 2(a)
(b) Rule 2(b)
(c) Rule 3
(d) Rule 4
Answer:
(c) Rule 3
Question 71A.
In which of the following cases, importer can claim pilferage and choose not to pay duty under section 13 of the Customs Act, 1962?
(a) Goods pilfered while on high seas
(b) Goods pilfered before unloading
(c) Goods cleared for home consumption
(d) Goods pilfered after unloading but before order for home consumption given by proper officer
Answer:
(d) Goods pilfered after unloading but before order for home consumption given by proper officer
Question 72.
Which are 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
Answer:
(a) Akin Rule
Question 73.
Which one of the following is FALSE with reference to Rule 6 of Rules of Interpretation?
(a) Sub-heading at the same level are comparable.
(b) Sub-heading can be comparable only with another sub-heading within the same heading
(c) Both (a) and (b)
(d) None of the above.
Answer:
(b) Sub-heading can be comparable only with another sub-heading within the same heading
Question 74.
Which one of the following is NOT an exception to Rule 5 of Rules of Inter-pretation?
(a) Durable containers capable of respective use should be classified separately.
(b) When packing material itself gives the essential character as a whole.
(c) Cases/containers shall be classified with a specific article when of a kind normally sold therewith.
(d) None of the above.
Answer:
(c) Cases/containers shall be classified with a specific article when of a kind normally sold therewith.
Question 75.
The items eligible for Project Import are specified in heading of the Customs Tariff Act, 1975
(a) 9801
(b) 9108
(c) 8901
(d) 8908
Answer:
(a) 9801
Question 76.
Under Project Import, the spare parts, raw material and consumables stores up to ….. of the value of goods can
be imported
(a) 596
(b) 1096
(c) 1596
(d) 2096
Answer:
(b) 1096
Question 77.
When the goods consists of more than one material or substance, then the heading which provides the most specific description shall be preferred to headings providing a more General description. It is the application of which Rule?
(a) Essential Character Principle
(b) Specific over General
(c) Akin Rule
(d) Latter the Better
Answer:
(b) Specific over General
Question 78.
The document showing the particulars of the consignment for which the buyer has placed an order with the supplier is called as ……….
(a) Indent
(b) Delivery order
(c) Consignment note
(d) Bill of lading
Answer:
(a) Indent
Question 79.
………… is the instrument delivered by the Bank intimating the seller of the goods, the Bill amount for the supply of the goods on presentation of certain documents evidencing shipment of the goods
(a) Sight Draft
(b) Bank Draft
(c) Letter of Credit
(d) Letter of Undertaking
Answer:
(c) Letter of Credit
Question 80.
The port authorities have to be paid the charges called as Landing Charges. These charges include:
(a) Unloading the cargo from the conveyance
(b) Light house charges
(c) Forklift, warehouse crane charges, if they are used for landing
(d) All of the above
Answer:
(d) All of the above
Question 81.
For Imported goods, the conversion in Value shall be done with reference to the rate of exchange prevalent on the date of …………
(a) Filling Bill of Entry
(b) Grant of Entry Inwards
(c) Earlier of (a) and (b)
(d) (a) or (b) whichever is later
Answer:
(a) Filling Bill of Entry
Question 82.
For the purpose of Valuation under Customs, the rate of exchange notified by ………. shall be taken into account.
(a) Central Board Indirect Taxes & Customs
(b) Reserve Bank of India
(c) Foreign Exchange Dealers Association of India
(d) Any of the above
Answer:
(a) Central Board Indirect Taxes & Customs
Question 83.
Samar Timber Corporation submitted the Bill of entry on 11-4-2018. On account of mistake, the Bill of entry was represented on 28-4-2018 after correction. The relevant date in respect of duty payable is ………..
(a) Date of presentation of B/E (11-4-2018)
(b) Date of re-presentation of B/E (28-4-2018)
(c) Three days after date of presentation
(d) Three days after date of re-presentation.
Answer:
(a) Date of presentation of B/E (11-4-2018)
Question 84.
The CBIC notifies the currency con-version rates periodically, generally every …….
(a) Day
(b) Week
(c) Fortnight
(d) Month
Answer:
(c) Fortnight
Question 85.
Which are of the following statement is correct?
(a) The selling rate notified by CBIC is for Imported goods
(b) The buying rate notified by CBIC is for export goods
(c) The CBIC notifies single currency conversion rate
(d) Both (a) and (b)
Answer:
(d) Both (a) and (b)
Question 86.
For goods exported by vehicle, the conversion in Value shall be done with reference to the rate of exchange prevalent on the date of ……..
(a) Filing shipping Bill
(b) Filing Bill of export
(c) Filing Bill of entry
(d) Receipt of entry outward
Answer:
(b) Filing Bill of export
Question 87.
Select the odd out,………
(a) Shipping Bill
(b) Bill of export
(c) Bill of entry
(d) Export of goods
Answer:
(c) Bill of entry
Question 88.
In which of the following case (s), the transaction Value shall be accepted.
(a) There are no restrictions as to the disposition or use of the goods by the buyer.
(b) The buyer and seller are not related
(c) The sale or price is not subject to some condition or consideration for which a Value cannot be determined in respect of goods being Valued.
(d) All of the above.
Answer:
(d) All of the above.
Question 89.
If the Value cannot be determined under Rule 3(1) of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007, then the Value shall be determined through Rule 4 to Rule 9 by proceeding:-
(a) Sequentially
(b) Backward sequence
(c) No such sequence
(d) None of the above
Answer:
(a) Sequentially
Question 90.
As per Rule 3(1), subject to Rule 12, the Value of Imported goods shall be the transaction Value adjusted in accordance with the provisions of…
(a) Rule 4
(b) Rule 6
(c) Rule 9
(d) Rule 10
Answer:
(d) Rule 10
Question 91.
The transaction Value is not accepted in case of sale between related persons but, there is an exception. If the importer demonstrates that the declared Value closely approximates to ……, then transaction Value is accepted.
(a) It is similar to sales to unrelated buyers in India
(b) The deductive Value for identical or similar goods
(c) The computed Value for identical or similar goods
(d) Any of the above
Answer:
(d) Any of the above
Question 92.
Which are the following is not covered under Rule 10:
(a) Cost incurred by buyer but not included
(b) Supply of goods or services free of cost
(c) Supply of goods or services at market rate
(d) Royalties and license fees payable as a condition of sale.
Answer:
(c) Supply of goods or services at market rate
Question 93.
If the Value of Imported goods cannot be determined under the provision of Rules 3,4 and 5 then, as per Rule 6 of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007; which one of the following is INCORRECT:
(a) The Value shall be determined by Rule 7
(b) The Value is determined by Rule 8, in case Rule 7 fails.
(c) At the request of importer, the sequence of application of Rule 7 & Rule 8 cannot be changed
(d) At there quest of importer application of, sequence of Rule 7 and Rule 8 may be reserved.
Answer:
(c) At the request of importer, the sequence of application of Rule 7 & Rule 8 cannot be changed
Question 94.
In case of goods entered for Home Consumption, the rate of duty and tariff Valuation shall be the rate and Valuation in force on the date of …………
(a) Presentation of Bill of entry
(b) Entry inwards of vessel
(c) Later of (a) &(b)
(d) Earlier of (a) & (b)
Answer:
(c) Later of (a) &(b)
Question 95.
When the goods are cleared for Home Consumption from the warehouse, the rate of duty shall be the rate in force on the date of ……
(a) Presentation of Bill of entry
(b) Entry inwards of vessel
(c) Later of (a) & (b)
(d) Earlier of (a) & (b)
Answer:
(a) Presentation of Bill of entry
Question 96.
In case of goods entered for export, the rate of duty & tariff Valuation shall be the rate in force on the date
(a) Presentation of Bill of entry
(b) Permission of proper office for clearance & loading of goods for exportation
(c) Earlier of (a) & (b)
(d) Later of (a) &(b)
Answer:
(b) Permission of proper office for clearance & loading of goods for exportation
Question 97.
After the amendment in CVR, 2007 vide circular No. 39/2017-Cus., dated 26-9-17, which one (s) of the following charges associated with the delivery of Imported goods “At the place of importation” are not added to CIF Value of goods:
(a) Loading charges
(b) Unloading charges
(c) Handling charges
(d) All of the above.
Answer:
(d) All of the above.
Question 98.
As per section 154A of the Customs Act, 1962, the amount of duty, interest, penalty, fine or any other sum payable, under the provision of the Act, shall be rounded off to the:
(a) Nearest Rupee
(b) Multiple of 10
(c) Multiple of 100
(d) Multiple of ₹ 1000
Answer:
(a) Nearest Rupee
Question 99.
The amount of total Customs duty is calculated at ₹ 39,899.49. The final amount of Customs duty after being rounded off as per section 154A will be
(a) ₹ 39,899
(b) ₹ 39,900
(c) ₹ 40,000
(d) ₹ 39,850
Answer:
(a) ₹ 39,899
Question 100.
The FOB and transportation cost are ₹ 11, 00,000 and ₹ 2,30,000 respectively. Calculate the CIF Value, if cost of insurance cover is not ascertainable & goods have been Imported by mode other than Air.
(a) ₹ 13,42,375
(b) ₹ 13,34,850
(c) ₹ 15,96,000
(d) None of the above.
Answer:
(a) ₹ 13,42,375
Question 101.
A material was Imported by air at CIF price of 8,000 US $ freight paid was 2400 US$ and insurance cost was 8 -US $. What is the Assessable Value for Customs purpose?
(a) 8000 minus 2,400 minus 800
(b) 8000 plus 2,400 plus 800
(c) 8,000 Minus 20% of 8,000 minus 1.125% of 8,000
(d) None of the above.
Answer:
(a) 8000 minus 2,400 minus 800
Question 102.
Which are of the following is not included in the Assessable Value?
(a) Cost of Machine
(b) Transport charges from factory of exporter to the port for shipment
(c) Buying commission paid by importer
(d) Freight charges from exporting country to India.
Answer:
(c) Buying commission paid by importer
Question 103.
Consider the following:
| The selling price (inclusive of IGST) |
₹ 7,06,348 |
| BCD |
11% |
| IGST u/s 7 |
18% |
| Post Importation Exp. |
₹ 41,935 |
| IGST (Inter-state) |
18% |
The Assessable Value as per deductive method is
(a) 4,25,000
(b) 4,50,000
(c) 3,75,000
(d) None of the above.
Answer:
(a) 4,25,000
Question 104.
Mr. Raman of India Imported goods from a related person Mr. vivek of US. The transaction Value is rejected & Rule 8 is applied by Customs authorities since Rules 4 and 5 of Import Valuation Rules are found inapplicable. The relevant data are:
Total cost incurred by Vivek $ 9,000
Air freight from US port to Indian port $ 2,500
Insurance from US port to Indian port $ 100
Normal Net profit margin of Mr. Vivek 25% of cost Exchange rate ₹ 68
The assessable Value as per computed Value (Rule 8) is
(a) ₹ 9,00,000
(b) ₹ 9,24,800
(c) ₹ 13,250
(d) None of the above.
Answer:
(b) ₹ 9,24,800
Question 105.
There is a transaction of import of goods between related persons. Although identical goods are also Imported in India, but the Imported in India, but the importer requests the Customs department to apply deductive method. Which are of the following is NOT CORRECT:
(a) Transaction Value cannot be applied
(b) Rule 7 (Deductive) can be applied
(c) Rule 7 cannot be applied as Rule 4 (Identical goods) is a available
(d) The sequential application of Rules is mandatory.
Answer:
(b) Rule 7 (Deductive) can be applied
Question 106.
Mr. Smart Imported certain articles from a related person. The employee of Mr. Smart has calculated the Assessable Value under different Valuation Rules as under:
Rule 3 = ₹ 40,000 Rule 4 = ₹ 2,10,000 Rule 5 = ₹ 2,05,000
What will be the assessable Value that should be accepted by the Customs AuthoritiesAnswer:
(a) ₹ 40,000
(b) ₹ 2,10,000
(c) ₹ 2,05,000
(d) None of the above.
Answer:
(b) ₹ 2,10,000
Question 107.
The expression “Goods of the same class or kind” used in Rule 7 and Rule 8 of the Customs Valuation (Determination of Value of the Imported Goods) Rules, 2007 does not include
(a) Identical goods
(b) Similar goods
(c) Imported goods produced by that particular industry
(d) None of these.
Answer:
(d) None of these.
Question 108.
Mode of transport: Vessel BCD : 10%
Social Welfare Surcharge : 10% Integrated Tax u/s 3 (7): 18%
Air freight: 15% of FOB
Insurance : 2% of FOB
Total cost of Imported goods: ₹ 15,32,466
The FOB Value is
(a) ₹ 14,00,000
(b) ₹ 10,00,000
(c) ₹ 12,40,000
(d) ₹ 13,15,000
Answer:
(b) ₹ 10,00,000
Question 109.
Mr. X has Imported some goods from USA by air. In the computation of FOB Value as per Customs, which one of the following shall be included:
(a) Local agent’s commission (not buying commission)
(b) Cost of Insurance
(c) Air Freight
(d) All of the above.
Answer:
(a) Local agent’s commission (not buying commission)
Question 110.
Mr. Importer has requested the Customs Authorities to apply “Computed Value as per Rule 8” since the data required is available. The authorities are of the opinion that the sequential application of Rules is required. So, Rule 7 should be applied first. Which of the following statement is CORRECT:
(a) Rule 7 should be applied.
(b) Rule 8 may be applied.
(c) That Rule is to be applied which gives higher Value.
(d) None of the above.
Answer:
(b) Rule 8 may be applied.
Question 111.
In application of Rule 8, the cost incurred by the exporter (i.e. seller) is calculated. In such calculation, which of the following will NOT he included:
(a) Loading charges at US port.
(b) Loading charges at India port.
(c) Cost of material.
(d) Fabrication and freight from factory to US port.
Answer:
(b) Loading charges at India port.
Question 112.
As per Rule 9(1), “Residual Method of Valuation”, the Value is to be determined using reasonable means:
(a) Consistent with the principles
(b) General provisions of Rules
(c) Section 14 and data available
(d) All of the above.
Answer:
(d) All of the above.
Question 113.
The Computed Value, as per Rule 8 DOES NOT include:
(a) Cost of material or fabrication in producing Imported goods.
(b) Cost or Value of all expenses under Rule 10(2).
(c) Amt. of profit and general expense which are made by producers in the country of exportation for export to India.
(d) Air freight from that country to India.
Answer:
(d) Air freight from that country to India.
Question 114.
The price of product at exporter’s factory is US $ 11,000. He paid $ 400 from factory of the exporter to load airport. $ 350 has also been paid by him as loading & handling charges at the load airport. For freight & insurance from load airport to airport of importation in India, $ 2,585 and $ 140 have also been paid. What is the CIF Value in US$?
(a) US$ 14,240
(b) US$11,750
(c) US$ 14,475
(d) None of the above.
Answer:
(a) US$ 14,240
Question 115.
Which are of the following is governed by special provisions of Customs:
(a) Goods imported by sea
(b) Goods imported by Air
(c) Goods imported by Land
(d) Goods imported by Post.
Answer:
(d) Goods imported by Post.
Question 116.
As per section 2(2) of Customs Act, assessment includes ………
(a) Provisional assessment
(b) Self-assessment
(c) Re-assessment
(d) All of the above.
Answer:
(d) All of the above.
Question 117.
Beneficial owner, means any person ……….
(a) On whose behalf the goods are being imported
(b) Who exercises effective control over the goods being imported
(c) Both (a) and (b)
(d) None of the above.
Answer:
(c) Both (a) and (b)
Question 118.
Under Customs, the terms “goods” does not include ………
(a) Vessels, aircraft and vehicles
(b) Baggage
(c) Currency and negotiable instruments
(d) None of the above.
Answer:
(d) None of the above.
Question 119.
The Person-in-Charge in relation to vessel is ……..
(a) Conductor
(b) Master
(c) Commander
(d) Pilot-in-Charge.
Answer:
(d) Pilot-in-Charge.
Question 120.
Goods for use in a vessel or aircraft including fuel and spare parts are called as ……………..
(a) Consumables
(b) Stores
(c) Lubricant
(d) Any of the above.
Answer:
(d) Any of the above.
Question 121.
Which one of the following is not a notified Customs portAnswer:
(a) Port Blair
(b) Kandla
(c) Tuglakhabad (Delhi)
(d) Panaji port.
Answer:
(c) Tuglakhabad (Delhi)
Question 122.
Who has the powers to specify the limits of Customs area under section 8 of Customs Act, 1962Answer:
(a) CBIC
(b) Central Govt.
(c) Principal commissioner/commissioner of Customs
(d) None of the above.
Answer:
(c) Principal commissioner/commissioner of Customs
Question 123.
The provisions of section 29(1) are not applicable in case of emergency landing due to accident, stress of weather or other unavoidable cause. Which one of the following is the obligation cast on person- in-charge as per section 29(2)
(a) Reporting of arrival to nearest Customs officer or office-in-charge of police station
(b) Shall not permit any goods to be unloaded or any of crew or passenger to depart
(c) Both (a) and (b)
(d) None of the above.
Answer:
(c) Both (a) and (b)
Question 124.
The person in charge of the vessel is required to deliver the Arrival Manifest. In case of vessel, the time limit for presentation of import manifest is ……..
(a) Electronically prior to arrival of vessel at custom station
(b) Within 6 hours before arrival at Customs station
(c) Within 12 hours after arrival
(d) Electronically immediately after arrival.
Answer:
(a) Electronically prior to arrival of vessel at custom station
Question 125.
The presentation of Arrival Manifest or import report within 12 hours after its arrival is applicable in case of ………
(a) Vessel
(b) Aircraft
(c) Vehicle
(d) All of the above.
Answer:
(c) Vehicle
Question 126.
The arrival manifest/report ………… amended or supplemented.
(a) Cannot be
(b) Can be (without any condition)
(c) Can be (on satisfaction of proper officer)
(d) Can be (within 2 hours)
Answer:
(c) Can be (on satisfaction of proper officer)
Question 127.
What is the penalty for non-filing the arrival manifest/report within the time limit as per section 30Answer:
(a) ₹ 50,000
(b) Not exceeding ₹ 50,000
(c) ₹ 50,000 plus ₹ 100 per day till default continues
(d) None of the above.
Answer:
(b) Not exceeding ₹ 50,000
Question 128.
The section 30A(1) requires that the person-in-charge of a conveyance that enters into India from any place outside, shall deliver to the proper officer:-
(a) Passenger arrival manifest
(b) Crew arrival manifest
(c) Passenger name record information of arriving passengers
(d) All of the above.
Answer:
(b) Crew arrival manifest
Question 129.
As per section 31, the imported goods not be unloaded from vessel until entry inwards granted, this provision is not applicable to unloading of………..
(a) Baggage accompanying a passenger or a member of the crew
(b) Mail bags, animals
(c) Perishable and hazardous goods
(d) All of the above.
Answer:
(d) All of the above.
Question 130.
As per section 35, if the vessel arriving at the import cargo is taken from the ship to the Shore in boats. Which of the following statement is incorrect in this regard:
(a) No imported goods shall be water-borne for being landed unless the goods are accompanied by a boat-note.
(b) Board may give general permission for goods being water-borne without boat-note.
(c) Proper officer may in any particular case give special permission for such movement such without boat-note.
(d) The boat-notes are in triplicate and in white colour.
Answer:
(d) The boat-notes are in triplicate and in white colour.
Question 131.
At present, the exemption regarding goods to water borne without being accompanied by a boat-note is in operation in………
(a) Chennai port for import
(b) Chennai port for exports
(c) Kolkata port for exports
(d) All of the above.
Answer:
(d) All of the above.
Question 132.
As per the Boat-Note Regulations, 1976, which one of the following statement is CORRECT:
(a) Normally boat-note is issued by proper officer.
(b) Normally boat-note is issued by Principal Commissioner of Customs.
(c) Before issue of boat-note, the proper offices require authorization from Principal Commissioner.
(d) The boat-notes should be in quadruplicate.
Answer:
(a) Normally boat-note is issued by proper officer.
Question 133.
The procedures for clearance of imported goods are contained in section 45 to section 49 of the Customs Act. These procedures are not applicable to ……..
(a) Baggage
(b) Goods imported by post
(c) Both (a) & (b)
(d) None of the above.
Answer:
(c) Both (a) & (b)
Question 134.
Bill of Lading is a document of title to goods transported by ………
(a) Air Route
(b) Sea Route
(c) Railway Route
(d) Vehicle Route.
Answer:
(b) Sea Route
Question 135.
The bill of entry is filed in ……… Copies
(a) One
(b) Two
(c) Three
(d) Four
Answer:
(d) Four
Question 135A.
Outline the stepwise procedure of import of goods into India.
i. Grant of entry inwards to vessel
ii. Filing of Import General Manifest
iii. Unloading of goods
iv. Assessment of goods
v. Filing of Bill of Entry
vi. Payment of duty
(a) (i), (ii), (iii), (iv), (v), and (vi)
(b) (ii), (iii), (i), (iv), (v), and (vi)
(c) (iii), (ii), (i), (vi), (v), and (iv)
(d) (ii), (i), (iii), (v), (iv) and (vi)
Answer:
(d) (ii), (i), (iii), (v), (iv) and (vi)
Question 136.
The “original copy” of Bill of entry is for
(a) Customs authorities for assessment
(b) Customs authorities to custodian
(c) Importer
(d) Bank/RBI
Answer:
(a) Customs authorities for assessment
Question 137.
The Bill of Entry may be presented at any time not exceeding …….. prior to the expected arrival of the aircraft / vessel/ vehicle.
(a) 20 days
(b) 30 days
(c) 40 days
(d) 50 days
Answer:
(b) 30 days
Question 138.
The interest payable on amount payable to the Central Government, con-sequent to the final assessment order, is calculated:
(a) From the first day of the month of provisional assessment till the date of payment.
(b) From the day of provisional assessment till the date of payment.
(c) From the day of provisional assessment till the date of final assessment.
(d) From the first day of the month of provisional assessment till the last day of assessment month of final assessment.
Answer:
(a) From the first day of the month of provisional assessment till the date of payment.
Question 139.
What is the time limit for refund from the date of final assessment where the amount assessed is lower than the amount as per provisional assessment:
(a) Within 2 months
(b) Within 3 months
(c) Within 4 months
(d) No limit
Answer:
(b) Within 3 months
Question140.
As per section 51, when the Customs officer is satisfied that the goods are not prohibited and the exporter has paid the duty and other charges payable in respect of same, he makes the order for shipment on the duplicate copy of the shipping Bill. This is known as ………….
(a) Allowed orders
(b) Let export orders
(c) Valid export orders
(d) Sanctioned export orders
Answer:
(b) Let export orders
Question 141.
With reference to Rule 3 of Baggage Rules, 2016, “Infant” class passenger means a child
(a) Of any age
(b) Not more than 1 year of age
(c) Not more than 2 year of age
(d) Not more than 3 year of age
Answer:
(c) Not more than 2 year of age
Question 142.
“Personal Effects” means
(a) Things attached for satisfying daily necessities
(b) Jewellery up to 20gms. (for Male) & up to 40 gms (for female)
(c) Jewellery upto ₹ 25,000 (for male) & up to ₹ 50,000 (for female)
(d) None of the above.
Answer:
(a) Things attached for satisfying daily necessities
Question 143.
The facility of warehousing is avail-able to
(a) Traders
(b) Direct importers
(c) Both (a) & (b)
(d) None of the above.
Answer:
(c) Both (a) & (b)
Question 144.
The consideration which the importer is required to pay for warehousing facility is that he should bind himself to pay to the Government a sum equal to ………. the amount of total duty determined.
(a) Twice
(b) Thrice
(c) Four times
(d) 70%
Answer:
(b) Thrice
Question 145.
In case of warehousing, the importer agrees to pay duty on goods cleared from such warehouse at the rate of duty and valuation prevalent on the date on which: ……..
(a) Bill of Entry presented for warehousing.
(b) Bill of Entry is presented for clearing from warehouse.
(c) Entry inwards is issued.
(d) None of the above.
Answer:
(b) Bill of Entry is presented for clearing from warehouse.
Question 146.
When goods are warehoused, at such point of time, Customs duty is ……..
(a) Payable in full
(b) Payable at 50%
(c) Payable at 60%
(d) Not payable
Answer:
(d) Not payable
Question 147.
The Bill of Entry for warehousing is also called as: ……..
(a) Into-bond Bill of Entry
(b) Settled Bill of Entry
(c) Projected Bill of Entry
(d) Deferred Bill of Entry
Answer:
(a) Into-bond Bill of Entry
Question 148.
The deposit of goods imported in a warehouse is permitted:
(a) By the assessing officer at the port of import
(b) The permission is for deposit of goods
(c) No payment of duty is required at such time
(d) All of the above.
Answer:
(d) All of the above.
Question 149.
Which one of the warehouse is NOT included in warehouse under Customs:
(a) Private warehouse
(b) Public warehouse
(c) Special warehouse licensed
(d) None of the above.
Answer:
(d) None of the above.
Question 150.
How many types of warehouses are under Customs Act, 1962
(a) Two
(b) Three
(c) Four
(d) Five
Answer:
(b) Three
Question 150A.
What is the relevant date for determining rate of duty in case of ware-housed goods before clearing for home consumption:
(a) Date of presentation of in-bond bill of entry;
(b) Date of presentation of ex-bond bill of entry Le. bill of entry for home consumption;
(c) Date of payment of duty;
(d) Date of import of goods into India.
Answer:
(b) Date of presentation of ex-bond bill of entry Le. bill of entry for home consumption.
Question 151.
In a private warehouse, dutiable goods imported …….. are deposited:
(a) Only by licensee
(b) Only by Government
(c) Only by Principal Commissioner
(d) By any of the above
Answer:
(a) Only by licensee
Question 152.
Which one of the warehouse (s) remain under physical control of proper officer:
(a) Public warehouse
(b) Private warehouse
(c) Special warehouse
(d) All of the above
Answer:
(c) Special warehouse
Question 153.
The concept of Customs lock is applicable to …………
(a) Public warehouse
(b) Private warehouse
(c) Special warehouse
(d) All of the above
Answer:
(c) Special warehouse
Question 154.
The goods that may be warehoused in special warehouse are:
(a) Any dutiable goods
(b) Dutiable goods notified by CBIC
(c) Dutiable goods notified by CG
(d) Any goods notified by CG
Answer:
(b) Dutiable goods notified by CBIC
Question 155.
In case of special warehouse, no person will enter the warehouse or remove any goods there from without the permission of the:
(a) Proper officer
(b) Principal commissioner of Customs
(c) CBIC
(d) Central Government
Answer:
(a) Proper officer
Question 156.
Which of the following is notified goods for special warehouse:
(a) Gold & silver
(b) Other precious metals
(c) Semi-precious metals
(d) All of the above
Answer:
(d) All of the above
Question 157.
The license for warehouse is
(a) Renewed annually
(b) Renewed after two years
(c) Renewed after every three years
(d) Not required to be renewed.
Answer:
(d) Not required to be renewed.
Question 158.
As per section 74, Duty drawback is allowed in respect of imported goods on which ………..
(a) Duty has been exempted an importation
(b) Duty has been paid on importation
(c) Duty has been paid on exportation
(d) Duty has been exempted on exportation.
Answer:
(b) Duty has been paid on importation
Question 159.
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%
Answer:
(b) 70%
Question 160.
One of the conditions for drawback requires that the imported goods must have been entered for exportation and the proper officer must have made an order for permitting clearance of goods for exportation. It includes exportation
(a) Under section 51
(b) Under section 77 as baggage
(c) Under section 84 (a) by post
(d) All of the above
Answer:
(d) All of the above
Question 161.
What percentage of the import Duty paid is allowed as drawback in case of goods are exported out of India without being put to useAnswer:
(a) 98%
(b) 90%
(c) 100%
(d) 50%
Answer:
(a) 98%
Question 162.
The time limit for section 74 draw-back is ………..
(a) Within 2 years from the date of payment of Duty on importation.
(b) Within 1 year from the date of payment of Duty on importation.
(c) Within 2 years from the date of importation.
(d) Within 2 years from the date of filing of bill of entry.
Answer:
(a) Within 2 years from the date of payment of Duty on importation.
Question 163.
The time limit of 2 years is given for section 74 drawback. If the importer ware-housed the imported goods, the relevant date is the date on which
(a) Goods are imported
(b) Goods are cleared for home consumption
(c) Bill of entry for exbond is submitted
(d) None of the above.
Answer:
(b) Goods are cleared for home consumption
Question 164.
As per section 74(2), where the imported goods are used after importation, the amount of drawback will be at the reduced rate. This rate is fixed by:
(a) Central Government
(b) State Government
(c) CBIC
(d) CBDT
Answer:
(a) Central Government
Question 165.
If wearing apparel and Tea chests are not used after their importation into India and subsequently re-exported in the condition they were imported then they would be entitled to drawback
(a) 98%
(b) 80%
(c) 50%
(d) Nil
Answer:
(a) 98%
Question 166.
Ranbir imported wearing apparel for personal use. After having used for only 15 days, these are re-exported. Calculated the amount of Duty drawback if Ranbir has paid ₹ 2,000 as import Duty at the time of importation.
(a) ₹ 2,000
(b) 98% ofAnswer: 2000
(c) 95% ofAnswer: 2000
(d) Nil
Answer:
(d) Nil
No duty drawback is allowed on wearing apparel which has been taken into use and re-exported.
Question 167.
Which one of the following statement regarding reduced drawback is incorrectAnswer:
(a) If the use is for period not more than three months, 95% of import Duty to be paid as drawback.
(b) 75% drawback is applicable for more than 6 months but not more than 9 months.
(c) No drawback is allowed if the goods have been used for more then 18 months.
(d) 50% rate is applicable for more than 18 months but up to 24 months.
Answer:
(d) 50% rate is applicable for more than 18 months but up to 24 months.
Question 168.
Rohan imported goods & paid import Duty ₹ 30,000. These goods are merely tested & not used. Theses are re-exported within a week. Calculate Duty drawback under section 74 of Customs Act,1962.
(a) Section 74 is not applicable
(b) 98% of ₹ 30,000 (Treated as unused)
(c) 95% of ₹ 30,000 (Treated as used)
(d) Deduction of 4% per quarter.
Answer:
(c) 95% of ₹ 30,000 (Treated as used)
Even if imported goods are merely tested, though not used, it will be treated as used after importation.
Question 169.
If the car or specified goods are re-exported immediately (without use), the Duty drawback under section 74 shall be ……..
(a) 98%
(b) After Reduction 4% per quarter
(c) After Reduction 3% per quarter
(d) Not allowed
Answer:
(a) 98%
Question 170.
What is the status of Duty drawback. When motor car is re-exported after being used for five years
(a) 98%
(b) After reduction 4% p.a.
(c) 50%
(d) Not Allowed.
Answer:
(d) Not Allowed.
Question 171.
Which one of the following are rebatable as Duty drawback:
(a) Anti dumping Duty
(b) Safeguard duties
(c) Countervailing Duty
(d) All of the above.
Answer:
(d) All of the above.
Question 172.
The drawback under section 74 of Customs Act includes
(a) Basic Customs Duty
(b) Integrated tax under section 3(7)
(c) Compensationcess under section 3(9)
(d) All of the above.
Answer:
(d) All of the above.
Question 173.
Mohan imported projector and other office equipment after payment of ₹ 2,75,000 as import Duty. What will be the drawback under section 74, if these articles are re-exported by Mohan after 18 monthsAnswer:
(a) ₹ 1,92,500
(b) ₹ 1,78,750
(c) ₹ 1,65,000
(d) Nil
Answer:
(d) Nil
Question 174.
Raja has applied for extension of time for filing drawback claim after expiry of 3 months time limit. The application is for further 3 months beyond the original period of 3 months. Since, the FOB value of exports is ₹ 40, 00,000, Raja is worried about the application fee. What will be the fee payable along with the application for grant of extension
(a) 1% of FOB (i.e ₹ 40,000)
(b) ₹ 1,000
(c) Lower of (a) & (b) (i.e. 11,000)
(d) Higher of (a) &(b) (i.e. ₹ 40,000)
Answer:
(c) Lower of (a) & (b) (i.e. 11,000)
Question 175.
Mr. Mitra Pal filed a claim for pay ment of Duty drawback amounting to ₹ 1,00,000 on 30-7-2017. However the was amount received on 28-10-17. The quantum interest payable u/s 75A is
(a) ₹ 970
(b) ₹ 485
(c) ₹ 1480
(d) None of the above.
Answer:
(a) ₹ 970
Question 176.
What is the period, starting from the date of demand, within which the claimant shall pay if drawback has been paid to him erroneously
(a) Within 15 days
(b) Within 1 month
(c) Within 2 month
(d) Within 3 month
Answer:
(c) Within 2 month
Question 177.
Under which section the drawback does not require any minimum value addition:
(a) Section 73
(b) Section 74
(c) Section 75
(d) Both (b) & (c)
Answer:
(b) Section 74
Question 178.
There are two sections 74 and 75 for Duty drawback. Which section requires that the goods must be capable of being easily identified:
(a) Section 74
(b) Section 75
(c) Both (a) & (b)
(d) No such criteria
Answer:
(a) Section 74
Question 179.
FOB value exported goods = ₹ 2,00,000
Rate of drawback = 40% of FOB value Market price of goods = ₹ 1,50,000
Value of imported material used in goods is: 1,20,000
The drawback admissible under section 75 is
(a) ₹ 50,000
(b) ₹ 80,000
(c) ₹ 30,000
(d) Nil
Answer:
(a) ₹ 50,000
Question 180.
As per section 28(1) of the Customs Act, 1962 the proper officer can issue show cause notice [SCN].
(i) When the duty has not been levied/ short levied.
(ii) When the duty has not been paid/ short paid.
(iii) When interest payable has been paid/ part paid.
(iv) When duty/ interest payable has been erroneously refunded.
The SCN can be issued in situations
(a) (i) and (ii)
(b) (iii) and (iv)
(c) (i), (ii) and (iii)
(d) (i), (ii), (iii) &(iv)
Answer:
(d) (i), (ii), (iii) &(iv)
Question 181.
……. may be defined as “to act in concert especially in fraud, a secret agreement to deceive”.
(a) Collusion
(b) Fraud
(c) Wilful misstatement
(d) Mis-statement
Answer:
(a) Collusion
Question 182.
In relation to section 28 of the Customs Act, 1962, which one of the following statement is false:
(a) It is based upon principles of natural justice
(b) It is requires that assessee must be given reasonable opportunity before any action is taken against him
(c) It is related with demand of duty not paid, short paid or erroneously refunded
(d) The notice cannot be issued for interest not paid, short paid or erroneously refunded.
Answer:
(d) The notice cannot be issued for interest not paid, short paid or erroneously refunded.
Question 183.
Where the person is chargeable with duty/interest for reasons OTHER THAN collision, wilful mis-statement, suppression of facts, then proper officer shall issue show cause notice:
(a) Within one year
(b) Within two years
(c) Within five years
(d) No such limit
Answer:
(b) Within two years
Question 184.
Under section 28 of Customs Act, 1962, if the reason is collusion, wilful misstate-ment, suppression of fact, then the proper officer shall serve SCN within
(a) One year
(b) Two years
(c) Five years
(d) No such limit
Answer:
(c) Five years
Question 185.
The show cause notice under section 28 will not be served if the amount involved is ………
(a) Less than ₹ 50
(b) Upto ₹ 50
(c) Less than ₹ 100
(d) Up to ₹ 100
Answer:
(c) Less than ₹ 100
Question 186.
Which are of the following is incorrect about voluntary payment of duty or interest before issue of SCN under section 28:
(a) The person chargeable may pay on the basis of his own assessment
(b) The person chargeable may pay on the basis of duty ascertained by the proper officer
(c) The interest is calculated as per section 28AA
(d) The person chargeable with the duty cannot pay before service of show cause notice.
Answer:
(d) The person chargeable with the duty cannot pay before service of show cause notice.
Question 187.
When the person on chargeable with the duty or interest pays before service of show cause Notice: which of following is correct:
(a) The payment may be made on the basis of duty as certained by proper officer only.
(b) The interest has to be paid as per section 28A.
(c) Such voluntary payment shall not be informed to any officer.
(d) The person, who has paid, shall inform the proper officer of such payment in writing.
Answer:
(d) The person, who has paid, shall inform the proper officer of such payment in writing.
Question 188.
Mr. X is chargeable with the duty ₹ 90,000 and interest ₹ 5,400. Before service of show cause notice, he paid the amount of duty along with the interest payable. Mr. X also informed the proper officer of such payment in writing. The proper officer, on receipt of such information.
(a) Shall serve SCN to Mr. X
(b) Shall not serve any show cause notice.
(c) Shall serve SCN to Mr. X before the expiry of 7 days from the receipt of this information.
(d) Shall not serve show cause notice if the information is furnished by speed post/e-mail.
Answer:
(b) Shall not serve any show cause notice.
Question 189.
Mr. Y informed the proper officer about payment of duty and interest on the basis of his own ascertainment. The proper officer is of the opinion that the amount so paid falls short of the amount actually payable, then proper office shall proceed to issue SCN and the period of two years shall be computed from the date of …………….
(a) Default by the person chargeable
(b) Payment by the person
(c) Receipt of information (sent by person making voluntary payment)
(d) Assessment by proper officer.
Answer:
(c) Receipt of information (sent by person making voluntary payment)
Question 190.
If the person to whom the SCN has been issued under section 28(4) pays the duty in fall or in part, as may be accepted by him and the applicable interest within 30 days of receipt of notice, the penalty would be reduced to …… of duty
specified in notice or accepted amount
(a) 10%
(b) 15%
(c) 18%
(d) 20%
Answer:
(b) 15%
Question 191.
In relation to section 28, “Deceit, im-posture, criminal deception done with the intention of gaining an advantage” means
(a) Fraud
(b) Collusion
(c) Wilful mis-statement
(d) Suppression of facts
Answer:
(a) Fraud
Question 192.
…….. may be defined as “to act in concert especially in fraud, a secret agreement to deceive”,
(a) Fraud
(b) Collusion
(c) Suppression of facts
(d) None of the above.
Answer:
(b) Collusion
Question 193.
A Show Cause Notice (SCN) de-manding Customs duty was issued in case of clearance by 100% exporter oriented undertaking (EOU) to domestic tariff Area (DTA). Which are of following is correct:
(a) SCN issued is defective in law.
(b) EOU is bound to pay Customs duty.
(c) SCN cannot be issued to EOU.
(d) None of the above.
Answer:
(a) SCN issued is defective in law.
Question 194.
As per section 28B, if every person who is liable to pay duty under this Act and has collected excess duty then such person shall pay the amount so collected to the credit of the ………
(a) Consumer Welfare fund
(b) Central Government
(c) Court deposits
(d) None of the above.
Answer:
(b) Central Government
Question 195.
The section 28AAA enables recovery of duty from the original holder of an instrument that was obtained by fraudulent means. This instrument may be account of……………..
(a) Duty exemption
(b) Remission scrip
(c) Duty credit scrip
(d) Any of the above.
Answer:
(d) Any of the above.
Question 196.
The recovery under section 28AAA is made from the original holder of the instrument where it has been obtained by him by means of……………
(a) Collusion
(b) Wilful mis-statement
(c) Suppression of facts
(d) Any of the above.
Answer:
(d) Any of the above.
Question 197.
Ramesh obtained instrument by means of suppression of facts (i.e. fraudulent means). The instrument has been used by Umesh. The duty relatable to such utilization of instrument shall be recovered from…………….
(a) Ramesh to whom instrument was issued)
(b) Recovery of duty from Ramesh shall be without prejudice to an action against Umesh (importer) under section 28.
(c) Both (a) & (b)
(d) None of the above.
Answer:
(c) Both (a) & (b)
Question 198.
When proper officer serves show cause notice on the person to whom the instrument was issued since he had obtained the same by means of fraudulent means, such person will have to reply to the notice within days from the date of receipt of notice.
(a) 30 days
(b) 40 days
(c) 60 days
(d) 70 days
Answer:
(a) 30 days
Question 199.
If there was a practice generally prevalent regarding levy of duty (including non-levy) on goods that are liable to duty/ a higher amount of duty, then …………. may notify that such excess duty will not be payable.
(a) Central Government
(b) CBIC
(c) Principal Commissioner of Customs
(d) None of the above.
Answer:
(a) Central Government
Question 200.
Under section 28BA, the provisional attachment of property can be restored to by the proper office during the pendency of the proceeding under section 28 in respect of cases:
(a) Involving wilful suppression collu-sion, etc.
(b) Not involving wilful suppression collusion, etc.
(c) Both (a) and (b)
(d) None of the above.
Answer:
(c) Both (a) and (b)
Question 201.
The duty collected is paid to the credit of the Central Government if the person has collected any amount
(a) In excess of the duty assessed or determined
(b) On goods which are wholly exempt
(c) On goods chargeable to nil rate of duty
(d) All of the above.
Answer:
(d) All of the above.
Question 202.
Under Customs, the refund of any excess amount of duty paid can be claimed by ……..
(a) Importer
(b) Exporter
(c) Both (a) & (b)
(d) Buyer only
Answer:
(c) Both (a) & (b)
Question 203.
As per section 27, the claim for refund of any duty or interest can be made by …….
(i) Person who has paid the duty or interest in excess.
(ii) Person who bore the incidence of such duty or interest.
(iii) Person who is a middle man in the chain
(iv) Person who is authorised dealer
(a) (i) and (it)
(b) (i) (ii) and (iii)
(c) (i) (it) and (iv)
(d) (i), (ii), (iii) & (iv)
Answer:
(d) (i), (ii), (iii) & (iv)
Question 204.
Self-assessment 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 an interest on such un-ref unded amount by Central Government.
(a) 1 month
(b) 2 months
(c) 6 months
(d) 3 months
Answer:
(d) 3 months
Question 205.
Which of the following is INCORRECT:
(a) Customs Refund Application (Form) Regulations, 1995 are applicable.
(b) Claim for refund must be made in duplicate.
(c) Claim to be made to AC/DC who has jurisdiction over the Customs station where duty was paid.
(d) Claim to be made to AC/DC who has jurisdiction over the Customs station where duty is being demanded.
Answer:
(d) Claim to be made to AC/DC who has jurisdiction over the Customs station where duty is being demanded.
Question 206.
The claim for refund of duty/interest, by the importer/exporter must be made before the expiry of
(a) One year from the date of payment of such duty or interest
(b) Two year from the date of payment of such duty or interest
(c) One year from the date when original amount was become due
(d) None of the above.
Answer:
(a) One year from the date of payment of such duty or interest
Question 207.
A claim by another person, from whom duty was collected, must be made before expiry of………
(a) One year from the date of payment
(b) One year from the date of purchases of goods
(c) One year from the date of payment to Government
(d) None of the above.
Answer:
(b) One year from the date of purchases of goods
Question 208.
In case, the duty or interest has been paid under protest:
(a) The one year limitation is applicable
(b) The two year limitation is applicable
(c) The limitation of one year shall not apply
(d) Refund claim may be filed with 2 years.
Answer:
(c) The limitation of one year shall not apply
Question 209.
Where the amount claimed is ………., it will not be refund.
(a) Up to ₹ 100
(b) Less than ₹ 100
(c) Less than ₹ 1000
(d) No such limit
Answer:
(b) Less than ₹ 100
Question 210.
When the person, who applies for refund is not the person who has borne the burden of duty, the refund is paid into……
(a) A Fund, called as Investors’ Education and Protection Fund.
(b) A Fund, called as Consumer Welfare Fund
(c) A Fund, called as Consumer Development Fund.
(d) None of the above.
Answer:
(b) A Fund, called as Consumer Welfare Fund
Question 211.
Rahul has importer an article, which has been valued at ₹ 50,000. The Customs duty on this article comes to ₹ 12,500. After adding his profit margin of ₹7,500, he sold article for ₹ 20,000 i.e. Rahul charged by duty, which is included in price. Later on,₹2,000 has been proved to be paid by Rahul in excess. This ₹ 2,000 will be………
(a) Refunded to Rahul
(b) Credited to Central Govt. A/c.
(c) Credited to consumer Welfare Fund
(d) None of the above.
Answer:
(c) Credited to consumer Welfare Fund
Question 212.
Raja importer “Ferrari 599 GTB Fiora- no”, red color car at a cost of ₹ 3.57 crores and paid the Customs duty at that time. After 10 days, Raja filed a refund claim for proportionate duty. The department rejected the refund claim on the grounds of unjust enrichment. In this regard, which one of the following holds true:
(a) The refund should be credited to consumer Welfare Fund.
(b) The refund cannot be made to the applicant as car has been imported for personal use.
(c) The principal of unjust enrichment will not apply and refund shall be paid to the applicant.
(d) None of the above.
Answer:
(c) The principal of unjust enrichment will not apply and refund shall be paid to the applicant.
Question 213.
What is the range of rate of interest that is permitted to the Government for fixation as interest rate on delay refund:
(a) Between 5% and 15%
(b) Between 5% and 24%
(c) Between 5% and 28%
(d) Between 5% and 30%
Answer:
(d) Between 5% and 30%
Question 214.
The interest on delayed refund is payable only in respect of delayed refund of Customs duty. What about deposits:
(a) No interest is payable in respect of deposits.
(b) Interest is equally payable in respect of deposits.
(c) Interest is payable at half rate on deposits.
(d) Interest is payable on deposits, if specified in the order.
Answer:
(a) No interest is payable in respect of deposits.
Question 215.
An application for refund of duty shall be made before the expiry of from the relevant date in prescribed from.
(a) 2 months
(b) 3 months
(c) 6 months
(d) 9 months
Answer:
(c) 6 months
Question 216.
Which one of the following is TRUE:
(a) Under Customs, same provisions are applicable to refund and appeal.
(b) Appeals may be made to any com-missioner under Customs.
(c) Refund can be claimed within 60 days.
(d) Refund claim cannot be a substitute for an appeal.
Answer:
(d) Refund claim cannot be a substitute for an appeal.
Question 217.
What is the minimum monetary limit below which refund cannot be granted, as per third provision to section 2(7) of the Customs, Act, 1962:
(a) ₹ 50
(b) ₹ 100
(c) ₹ 500
(d) ₹ 1,000
Answer:
(d) ₹ 1,000
Question 218.
The person for whose benefit, trust is created (i.e. beneficiary) is called as …..
(a) Cestui Que Trust
(b) Beneficial Trust
(c) Dependent Trust
(d) Transferred Trust.
Answer:
(a) Cestui Que Trust
Question 219.
“The theory of unjust enrichment is valid and constitutional”. This judgment of the supreme court was given in which case:
(a) Parimal Ray
(b) Mafatlal Industries Ltd.
(c) Priya Blue Industries Ltd.
(d) Banmore Foam.
Answer:
(b) Mafatlal Industries Ltd.
Question 220.
Who is empowered under section 11 of the Customs Act, 1962 to prohibit importation or Exportation of Goods:
(a) CBIC
(b) Central Government
(c) Ministry of foreign trade
(d) Supreme Court
Answer:
(b) Central Government
Question 221.
In order to keep a check over the large scale smuggling of silver out of the country and various consumer articles smuggled into the country, which chapter has been inserted in Customs Act in 1969
(a) Chapter IV
(b) Chapter IVA
(c) Chapter IVB
(d) Chapter IVC
Answer:
(b) Chapter IVA
Question 222.
How many goods have been notified under section 1 IB by the Central Govern-ment as “Notified Goods”
(a) Five
(b) Ten
(c) Eleven
(d) No goods are specified at present.
Answer:
(d) No goods are specified at present.
Question 223.
The section 11D of Customs Act, 1962 requires that any notified goods shall not be acquired unless it is accompanied by voucher or the memorandum. It is not re-quired when person has himself imported such goods. The voucher or memorandum is not required when person has acquired through
(a) By gift
(b) By succession
(c) Both (a) & (b)
(d) No such relaxation
Answer:
(c) Both (a) & (b)
Question 224.
As per section 11G the provision of sections 11C, 11E and 11F are not application to any notified goods which are ………..
(a) In personal use of person by whom they are owned, possessed or con-trolled.
(b) Kept in the residence premises of a person for his personal use.
(c) Both (a) & (b)
(d) Application in all cases.
Answer:
(c) Both (a) & (b)
Question 225.
In order to prevent or detect the export of goods illegally out of India, ….. has been introduced in Customs Act.
(a) Chapter IV
(b) Chapter IVA
(c) Chapter IVB
(d) Chapter IVC
Answer:
(c) Chapter IVB
Question 226.
Which one of the following is not a notified goods under section 11-I of the Customs Act, 1962
(a) Acetic Anhydride
(b) Drug formulations containing codeine or its salts
(c) Pseudo – ephedrine
(d) Alcohol
Answer:
(d) Alcohol
Question 227.
Every person who owns, possesses or controls any specified goods (under section 11 -I) on the specified date, the market value of which exceeds shall deliver an intimation to proper officer.
(a) ₹ 10,000
(b) ₹15,000
(c) ₹ 20,000
(d) ₹ 25,000
Answer:
(b) ₹15,000
Question 228.
As per section 11J, the intimation of possession of specified goods shall be given to the proper officer within ………
days
(a) Five
(b) Six
(c) Seven
(d) Ten
Answer:
(c) Seven
Question 229.
For the purposes of section 11M, petty sale means a sale at a price which does not exceed
(a) ₹ 1,000
(b) ₹ 2,000
(c) ₹ 5,000
(d) ₹ 10,000
Answer:
(a) ₹ 1,000
Question 230.
Under Chapter XV of Customs Act, 1962 who has/have been conferred with a right of remedies against the order passed under Customs Act and Rules
(a) Assessee
(b) Department
(c) Both (a) and (b)
(d) Both (a) and (b) and Supreme Court
Answer:
(c) Both (a) and (b)
Question 231.
How many stages of appeal are provided under Customs:
(a) Two stages
(b) Three stages
(c) Four stages
(d) Five stages
Answer:
(b) Three stages
Question 232.
Which are of the following is true:
(a) Three stages of appeal
(b) Two stages of revision
(c) Further appeal to Supreme Court
(d) All of the above.
Answer:
(d) All of the above.
Question 233.
The three stages of appellate authorities are:
(i) Proper officer
(ii) Commissioner
(iii) Commissioner (Appeals)
(iv) Deputy Commissioner
(v) CESTAT
(vi) High Court
(a) (i), (ii) and (iii)
(b) (ii), (iii) and (iv)
(c) (iii), (iv) and (v)
(d) (iii), (vi) and (vii)
Answer:
(d) (iii), (vi) and (vii)
Question 234.
For orders passed by officers lower than the rank of Principal Commissioner/ Commissioner of Customs, the FIRST APPEAL lies to the ……….
(a) Deputy Commissioner (Appeals)
(b) Assistant Commissioner (Appeals)
(c) Commissioners (Appeals)
(d) Appellate Tribunal
Answer:
(c) Commissioners (Appeals)
Question 235.
Where the order of the Tribunal does not relate to determination of rate of duty or value of goods, an appeals is made to the ………..
(a) Supreme Court under section 130
(b) High Court under section 130
(c) CESTAT
(d) Commissioner (Appeals)
Answer:
(d) Commissioner (Appeals)
Question 236.
In cases, where the order-in-original is passed by a Principal Commissioner/ Commissioner of Customs, appeal lies
(a) Directly to Supreme Court
(b) Directly to High Court
(c) Directly to Appellate Tribunal
(d) Directly to Commissioner (Appeals)?
Answer:
(c) Directly to Appellate Tribunal
Question 237.
Which one of the following section is related with appeals to the Commissioner (Appeals)?
(a) 128
(b) 129
(c) 130
(d) 130A
Answer:
(a) 128
Question 238.
The appeal to the Commissioner (Appeals) under section 128 of the Customs Act is filed within days from the date of the communication to him of such decision or order.
(a) 30
(b) 40
(c) 50
(d) 60
Answer:
(d) 60
Question 239.
The limiting period of 60 days for filing appeal under section 128 to Commissioner (Appeals) may be extended by Principal Commissioner (Appeals) for further period of days.
(a) 10
(b) 20
(c) 30
(d) 60
Answer:
(c) 30
Question 240.
As regards an order enhancing any penalty or fine in lien of confiscation or reducing the amount of refund
(a) Cannot be passed
(b) Can be passed without any condition.
(c) Shall not be passed unless the appellant has been given a reasonable opportunity
(d) None of the above.
Answer:
(c) Shall not be passed unless the appellant has been given a reasonable opportunity
Question 241.
CESTAT is …….
(a) Appellate Tribunal
(b) Adjudicating Authority
(c) Commissioner (Appeals)
(d) None of the above.
Answer:
(a) Appellate Tribunal
Question 242.
The Appellate Tribunal under section 129 of Customs Act, 1962 shall be constituted by …….
(a) CBIC
(b) Central Government
(c) Ministry of Foreign Trade
(d) None of the above.
Answer:
(b) Central Government
Question 243.
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) consists of …………..
(a) Judicial and Technical Members
(b) Judicial, administrative and Technical Members
(c) Administrative and Judicial Members
(d) Technical and Administrative members.
Answer:
(a) Judicial and Technical Members
Question 244.
Who among the following, on ceasing to hold office, shall not be entitled to appear, act or plead before the Appellate Tribunal
(a) President
(b) Vice-president
(c) Other member
(d) All of the above.
Answer:
(d) All of the above.
Question 245.
What is the fee for filing, of a memo-randum of cross -objections, if the amount of duty demanded is ₹ 4,00,000:
(a) ₹1000
(b) ₹ 2,000
(c) ₹ 5000
(d) Nil
Answer:
(d) Nil
Question 246.
Mr. A is aggrieved person in respect of order passed by the Commissioner (Appeals) under section 128A, demanding duty, interest and penalty amount to ₹ 1,80,000. What will be the fee prescribed under section 129A(6) for filing an appeal to the appellate Tribunal
(a) ₹ 500
(b) ₹ 1000
(c) ₹ 5,000
(d) ₹ 10,000
Answer:
(b) ₹ 1000
Question 247.
What is the amount of fee for filing an appeal to the Appellate Tribunal when the appeal is preferred by Principal Commissioner/Commissioner of Customs:
(a) ₹ 1,000
(b) ₹ 5,000
(c) ₹ 10,000
(d) Nil
Answer:
(d) Nil
Question 248.
What is the fee prescribed under section 129(7) for application for rectification of mistake, restoration of an appeal, etc:
(a) ₹ 500
(b) ₹1000
(c) ₹ 5,000
(d) ₹ 10,000
Answer:
(a) ₹ 500
Question 249.
What is the existing rate of interest payable U/S 129EE on delayed refund of predepositAnswer:
(a) 5% p.a.
(b) 6% p.a.
(c) 8% p.a.
(d) 10% p.a.
Answer:
(b) 6% p.a.
Question 250.
If the dispute is regarding penalty only, then as regards section 129E:
(a) No pre-deposit is required
(b) Pre-deposit is 7.5% of penalty in case of second Appeal before CESTAT
(c) Pre-deposit is 10% of penalty in case of first Appeal before Commissioner (Appeals).
(d) None of the above.
Answer:
(d) None of the above.
Question 251.
Gupta limited intends to file an appeal with CESTAT against the order of Commissioner (Appeals) which confirmed a duty demand of ₹ 24,00,000 and imposed a penalty of ₹ 6,00,000. The quantum of pre-deposit U/S 129E will be
(a) 7.5% of ₹ 24,00,000
(b) 7.5% of ₹ 30,00,000
(c) 10% of ₹ 24,00,000
(d) 10% of ₹ 30,00,000
Answer:
(c) 10% of ₹ 24,00,000
Question 252.
An appeal to High Court under section 130 shall be filed within days.
(a) 90
(b) 180
(c) 200
(d) No time limit
Answer:
(b) 180
Question 253.
What is the fee payable when appeal is filed to High Court under section 130 by other partyAnswer:
(a) 1200
(b) ₹ 2000
(c) ₹ 2500
(d) ₹ 5000
Answer:
(a) 1200
Question 254.
In order to evolve a mechanism for speedy Settlement of cases involving high revenue stakes, an alternative channel is available in the form of …..
(a) Arbitral Tribunal
(b) CESTAT
(c) Settlement Commission
(d) None of the above.
Answer:
(c) Settlement Commission
Question 255.
Presently, how many benches in the Settlement Commission have been constituted answer:
(a) Two
(b) Three
(c) Four
(d) Twelve
Answer:
(c) Four
Question 256.
The benches of Settlement Commission are functioning at ………….
(a) Delhi
(b) Mumbai
(c) Kolkata & Chennai
(d) All of the above.
Answer:
(d) All of the above.
Question 257.
When any proceeding is referred back in any, appellate Tribunal or any other authority to
(a) Shall Not be deemed to be a proceeding pending within the meaning of case defined under section 127A.
(b) Shall be deemed to be a proceeding pending within the meaning of case defined under section 127A.
(c) Shall be settled by Supreme Court.
(d) None of the above.
Answer:
(a) Shall Not be deemed to be a proceeding pending within the meaning of case defined under section 127A.
Question 258.
As per section 127B, who may make an application for Settlement in respect of a case, relating to him, before adjudication to the Settlement Commission:
(a) Any importer
(b) Any exporter
(c) Any other person
(d) Any of the above.
Answer:
(d) Any of the above.
Question 259.
In order to file application for Settlement of cases under section 127B, the application shall not be made unless the additional amount of duty accepted by the applicant in his application.
(a) Equal to ₹ 3,00,000
(b) Up to ₹ 3,00,000
(c) Exceeds ₹ 3,00,000
(d) No such limit
Answer:
(c) Exceeds ₹ 3,00,000
Question 260.
Mr. X has made application for Set-tlement of case with the “Settlement Com-mission”. Before the expiry of a week, he wants to withdraw the application. Which of the following statement is correct as per section 127B of the Customs Act, 1962.
(a) Application once made cannot be withdrawn in case of Settlement.
(b) Application can be withdrawn within 7 days.
(c) Application in case withdrawn within 14 days.
(d) Application can be withdrawn at any time.
Answer:
(a) Application once made cannot be withdrawn in case of Settlement.
Question 261.
In view of order of Delhi High court in the case of “Additional Commissioner of Customs v. Shri Ram Niwas Verma”, which one of the following statement is true:
(a) Settlement Commission has no limit on limit on its jurisdiction
(b) Settlement Commission has no jurisdiction in relation to goods specified under section 123 of Customs Act, 1962.
(c) Settlement Commission can refer the case direct to Supreme Court.
(d) Settlement Commission can take up any matter relating to any kind of goods.
Answer:
(b) Settlement Commission has no jurisdiction in relation to goods specified under section 123 of Customs Act, 1962.
Question 262.
As per section 127C, the Settlement Commission shall issue a notice to the applicant within …… from the date of receipt of the application to explain in writing as to why the application made by him should be allowed to be proceeded with.
(a) 5 Days
(b) 7 Days
(c) 10 Days
(d) 1 Month
Answer:
(b) 7 Days
Question 263.
What is the time limit within which the Settlement Commission may amend its order to rectify any error apparent on the face of record:
(a) Within 2 months from the date of passing order
(b) Within 3 months from the date of passing order
(c) Within 2 months from the date of finding error
(d) Within 3 months from the date of finding error
Answer:
(b) Within 3 months from the date of passing order
Question 264.
Every order of Settlement passed under section 127C
(a) Shall be re-conclusive as to the matters stated therein.
(b) Shall be re-opened for same matter
(c) Shall be re-opened in any proceeding under Customs Act, 1962
(d) Shall be subject to special audit
Answer:
(a) Shall be re-conclusive as to the matters stated therein.
Question 265.
The recovery of sums due under order of Settlement passed under section 127C may be recovered by …………
(a) Any proper officer
(b) Proper office having jurisdiction over the applicant.
(c) Any Principal Commissioner
(d) Principal Commissioner having jurisdiction over the applicant
Answer:
(b) Proper office having jurisdiction over the applicant.
Question 266.
As per section 127K, the sum specified in an order of Settlement passed under section 127C is recovered in accordance with the provision of ……………………
(a) Section 140
(b) Section 142
(c) Section 147
(d) None of the above.
Answer:
(b) Section 142
Question 267.
Which section is related with the inspection, etc. of report made by Settlement Commission:
(a) Section 127E
(b) Section 127F
(c) Section 127G
(d) Section 127H
Answer:
(c) Section 127G
Question 268.
The procedure for disposal of case by Settlement Commission is given in ……….
(a) Section 127
(b) Section 127B
(c) Section 127C
(d) None of the above.
Answer:
(c) Section 127C
Question 269.
A written decision on any of the questions referred to in section 28H raised by the applicant in his application in respect of any goods prior to its importation and exportation is called as ………
(a) Authoritative decision
(b) Advance Ruling
(c) Appellate Ruling
(d) None of the above.
Answer:
(b) Advance Ruling
Question 270.
Who is empowered to appoint Cus-toms Authority for Advance Rulings……..
(a) CBIC
(b) Central Government
(c) Principal Commissioner of Customs
(d) CBDT
Answer:
(a) CBIC
Question 271.
Who may be appointed to function as a Custom Authority for Advance Ruling, officer of the rank of
(a) Proper officer
(b) Principal Commissioner or Com-missioner of Customs
(c) Any of (a) and (b)
(d) None of the above.
Answer:
(b) Principal Commissioner or Com-missioner of Customs
Question 272.
Till the date of appointment of the Customs Authority for Advance Ruling, the existing Authority for Advance Rulings constitute under section 245-0 of the shall continue to be the Authority under Customs Act.
(a) Companies Act
(b) Income Tax Act
(c) IRDA Act
(d) FEMAAct
Answer:
(b) Income Tax Act
Question 273.
The Authority for Advance Rulings constituted under section 245-0 of Income Tax Act, 1961 shall exercise the conferred on it by or under Customs Act, 1962.
(a) Jurisdiction
(b) Powers
(c) Authority
(d) Jurisdiction, powers and Authority
Answer:
(d) Jurisdiction, powers and Authority
Question 274.
The Advance Ruling Authority constituted under Income Tax Act shall have ……… for the purpose of Customs Act.
(a) Revenue member
(b) Fiscal member
(c) Legal member
(d) Socio member
Answer:
(a) Revenue member
Question 275.
The Revenue members in Advance Ruling Authority must be a member from:
(a) Indian Revenue Service (Customs and Central Excise)
(b) Indian Administrative Service
(c) Indian Police Service
(d) None of the above.
Answer:
(a) Indian Revenue Service (Customs and Central Excise)
Question 276.
The application for Advance Ruling under section 28H of Customs Act shall he made in …………….
(a) Duplicate
(b) Triplicate
(c) Quadruplicate
(d) Single copy only
Answer:
(c) Quadruplicate
Question 277.
The fee to be paid along with application for Advance Ruling under Customs is …….
(a) ₹ 2,000
(b) ₹ 5,000
(c) ₹ 7,500
(d) ₹ 10,000
Answer:
(d) ₹ 10,000
Question 278.
Can an application for Advance Ruling be withdrawn by the applicant …………
(a) No
(b) Yes, if withdrawn within 30 days from date of application
(c) Yes, if withdrawn within 45 days from the date of application
(d) Yes, at any time
Answer:
(b) Yes, if withdrawn within 30 days from date of application
Question 279.
The question on which the Advance Ruling is sought can be in respect of …………
(a) Classification of goods
(b) Applicability of notification
(c) Principles for value determination
(d) Any of the above.
Answer:
(d) Any of the above.
Question 280.
What is the time limit for pronouncing Advance Ruling
(a) 2 months
(b) 3 months
(c) 4 months
(d) 6 months
Answer:
(b) 3 months
Question 281.
A copy of the Advance Ruling pronounced by the Authority shall be sent to ………..
(i) Applicant
(ii) Principal Commissioner of Customs
(iii) Commissioner of Customs
(iv) CESTAT
(v) Proper Officer
(a) (i) and (ii)
(b) (i), (ii) and (iii)
(c) (i), (ii), (iii) and (v)
(d) All of the above.
Answer:
(b) (i), (ii) and (iii)
Question 282.
The Advance Ruling shall not be binding in case of ………….
(a) Change in facts
(b) Change in law
(c) Either (a) or (b)
(d) Always applicable
Answer:
(c) Either (a) or (b)
Question 283.
An appeal under section 28KA may be filed within ……… from the date of communication of such Ruling or order
(a) 25 Days
(b) 50 Days
(c) 60 days
(d) None of the above.
Answer:
(c) 60 days
Question 284.
Where the Appellate Authority is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within specified period, it may allow a further period of days for filing such appeal.
(a) 30
(b) 40
(c) 60
(d) None of the above.
Answer:
(a) 30
Question 285.
The provisions regarding personal hearing and order under Advance Ruling are contained in section ……… of the Customs Act, 1962.
(a) 28H
(b) 281
(c) 28J
(d) 28K
Answer:
(b) 281
Question 286.
The Chapter VB was inserted in the Customs Act, 1962 by ………
(a) Finance Act, 1997
(b) Finance Act, 1999
(c) Finance Act, 2004
(d) Finance Act, 2014
Answer:
(b) Finance Act, 1999
Question 287.
As per section 28J, the Advance Ruling pronounced by the Authority under section 28-1 shall be binding on
(a) Applicant who sought it.
(b) Principal Commissioner.
(c) On the Principal Commissioner/ Commissioner of Customs and the Customs authorities subordinate to him, in respect of the applicant.
(d) All of the above.
Answer:
(d) All of the above.
Question 288.
The need to recover sums due to Government normally arises in situation(s):
(a) On confirmation of demand for short levy of duty.
(b) On imposition of fine or penalty in an adjudication proceedings.
(c) Both (a) and (b).
(d) When refund is claimed by assessee.
Answer:
(c) Both (a) and (b).
Question 289.
The offences committed under the Customs Act, 1962 are having the criminal liability as well as civil liability. However, the offences involving duty evasion of more than ……… or/and of are non-bailable of-fences under criminal liabilities.
(a) 50 lakh, Prohibited goods
(b) 50 lakh, Smuggled goods
(c) 100 lakh, Smuggled goods
(d) 100 lakh, Prohibited goods
Answer:
(a) 50 lakh, Prohibited goods
Question 290.
As per section 142, the recovery procedure may include method(s):
(a) To deduct the amount payable from the money owing to the defaulter.
(b) By detaining/selling goods of the defaulter.
(c) Either (a) or (b).
(d) None of the above.
Answer:
(c) Either (a) or (b).
Question 291.
In recovery procedure, when the re-covery is made by deducting the amount payable from the money owing to the defaulter, the power is given to
(a) Proper officer or any other officer of Customs.
(b) Assistant Commissioner or Deputy Commissioner of Customs.
(c) Both (a) and (b).
(d) Central Government.
Answer:
(a) Proper officer or any other officer of Customs.
Question 292.
As per section 142(1 )(b) of Customs Act, the goods belonging to defaulting person, which are under the control of Asstt. or Deputy Commissioner, are detained and sold for the recovery of sums due to the Government. This power has been given to:
(a) Proper officer or any other officer of Customs.
(b) Assistant Commissioner or Deputy Commissioner of Customs.
(c) Both (a) and (b).
(d) Central Government.
Answer:
(b) Assistant Commissioner or Deputy Commissioner of Customs.
Question 293.
As per section 142(l)(c)(i), the collector recovers the due as if it were on arrear of land revenue. This recovery procedure is adopted:
(a) Directly as a first measure.
(b) When recovery could not be made by deducting from money owing to the defaulter or by detaining/selling goods of defaulter.
(c) No such sequence has been given under the Act and it is left at the discretion of Customs authorities.
(d) None of the above.
Answer:
(b) When recovery could not be made by deducting from money owing to the defaulter or by detaining/selling goods of defaulter.
Question 294.
When recovery is made as Land revenue, a certificate is prepared. It has to be signed by:
(a) Assistant or Deputy Commissioner
(b) Proper Officer
(c) Both (a) and (b).
(d) None of the above.
Answer:
(a) Assistant or Deputy Commissioner
Question 295.
Under section 142(l)(c)(i), who recovers the amount due as if it were on arrears of Land RevenueAnswer:
(a) Proper Officer
(b) Collector
(c) Assistant Commissioner of Customs
(d) Principal Commissioner of Customs.
Answer:
(b) Collector
Question 296.
When the amount cannot be recovered from a person from whom money is due, the recovery is made……….
(a) Using Garnishee order
(b) Deducting from amount owing to defaulter
(c) Selling goods of the defaulter
(d) As a Land Revenue
Answer:
(a) Using Garnishee order
Question 297.
As per section 142 of the Customs Act, recovering from a person other than from whom money is due can be made if……..
(a) Other person holds money for first person.
(b) Other person holds money on account of the first person.
(c) Any of (a) and (b).
(d) No such condition prevails.
Answer:
(c) Any of (a) and (b).
Question 298.
The liability under Customs Act, 1962 is to be first charge under section 142A. This liability may be for…………
(a) Duty
(b) Penalty and Interest
(c) Any sum payable by assessee under Customs Act.
(d) Any of the above.
Answer:
(d) Any of the above.
Question 299.
The “Customs Audit” is given in ……..
(a) Section 99A
(b) Section 99B
(c) Section 99C
(d) Section 99D
Answer:
(a) Section 99A
Question 300.
Section 142Aof the Customs Act, 1962 provides that liability under the Act shall be the first charge. Which of the following is/are an exception in this regard….
(a) Sums payable under 529A of Com-panies Act, 1956 [Now companies Act, 2013]
(b) Sums payable under Recovery of debts due to Banks and Financial Institutions Act, 1993.
(c) Sums payable under Securitization and Reconstruction of Financial Assets and the Enforcement of Security Interest Act, 2002.
(d) All of the above.
Answer:
(d) None of these.
Question 301.
As per the High Court’s decision, when the Competent Authority has directed the Department to grant a refund, the department cannot wait for an inordinately long period to grant the refund. It is related with the case:
(a) Anita Grover
(b) Vishnu M Harlalka
(c) Sanghvi re-conditioners Limited
(d) None of these.
Answer:
(b) Vishnu M Harlalka
Question 302.
On-site Post Clearance Audit at prem-ises of Importer and Exporter Regulations, 2011 are repealed in…………
(a) 2011
(b) 2016
(c) 2017
(d) 2018
Answer:
(d) 2018
Question 303.
The section 99A is related with …….
(a) GST Audit
(b) Customs Audit
(c) Recovery Procedure Audit
(d) Secretarial Audit
Answer:
(b) Customs Audit
Question 304.
When the Customs Audit is to be conducted at the premises of the auditee, the authorised officers will intimate ……. in advance of their scheduled visit.
(a) 10 Days
(b) 15 Days
(c) 20 days
(d) No such advance intimated is required.
Answer:
(b) 15 Days
Question 305.
The Central Government has notified Customs Audit regulation, 2018 for Customs Audit. Any contravention of these Regulation attracts penalty of …
(a) ₹ 25,000
(b) ₹ 50,000
(c) ₹ 60,000
(d) ₹ 5,00,000
Answer:
(b) ₹ 50,000
