Paridhi Ltd. sent certain goods abroad for repairs. Paridhi Ltd. has been advised by their consultants that they will have to pay customs duty (i.e.…
CA Final · Indirect Tax Laws · MTP · May 2025
Paridhi Ltd. sent certain goods abroad for repairs. Paridhi Ltd. has been advised by their consultants that they will have to pay customs duty (i.e. basic customs duty, IGST & GST compensation cess) only on fair cost of repairs, cost of materials used in repairs (whether such costs are actually incurred or not), freight and insurance charges, both ways, on re-import of exported goods under Notification No. 45/2017 Cus dated 30.06.2017 provided they fulfill following conditions: (i) The re-importation is done within 3 years from date of export or, if time is extended, within 5 years. (ii) The exported and re-imported goods are same. (iii) The ownership of goods should not have changed. Paridhi Ltd. seeks your opinion about which one of the above-mentioned conditions is/are correct:
Suggested Answer and Working Notes:
Correct Answer: Option (A)
(i), (ii) and (iii)
Topics: Customs: Valuation under the Customs Act, 1962, Customs: Types of Duty
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