Mr. Mota Lal is engaged in the wholesale business of dry fruits. He imported 5,150 kg of almonds from California. Post importation, he did not clear…

CA Final · Indirect Tax Laws · RTP · November 2024
Mr. Mota Lal is engaged in the wholesale business of dry fruits. He imported 5,150 kg of almonds from California. Post importation, he did not clear them for home consumption but kept the imported almonds in a customs warehouse due to the renovation work going on in his retail store. Mr. Bansi Lal, the warehouse keeper, is of the view that titular rights of the almonds vest with him and Mr. Mota Lal has no access to them. However, Mr. Mota Lal wishes to inspect the goods and ensure that goods do not deteriorate during storage in the warehouse and thereafter, show them for sale to Mr. Manohar Lal. Which of the following statement(s) is correct in the given case as per the provisions of the Customs Act, 1962?
(A) The view taken by Mr. Bansi Lal is correct.
(B) The view taken by Mr. Bansi Lal is incorrect. However, Mr. Mota Lal can only inspect the goods.
(C) The view taken by Mr. Bansi Lal is incorrect. However, Mr. Mota Lal can only inspect the goods and ensure that goods do not deteriorate during storage in the warehouse but thereafter he cannot show them in warehouse for sale to Mr. Manohar Lal.
(D) The view taken by Mr. Bansi Lal is incorrect. Further, Mr. Mota Lal can inspect the goods and ensure that goods do not deteriorate during storage in the warehouse and also thereafter, he can show them in warehouse for sale to Mr. Manohar Lal.

Suggested Answer and Working Notes:

Correct Answer: Option (D)

The view taken by Mr. Bansi Lal is incorrect. Further, Mr. Mota Lal can inspect the goods and ensure that goods do not deteriorate during storage in the warehouse and also thereafter, he can show them in warehouse for sale to Mr. Manohar Lal.

Topics: Place of Supply

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