Vedant Traders imported a consignment of industrial adhesives valued at ₹8,00,000 under a Bill of Entry presented to the proper officer on 12th…

CA Final · Indirect Tax Laws · MTP · November 2026
Vedant Traders imported a consignment of industrial adhesives valued at ₹8,00,000 under a Bill of Entry presented to the proper officer on 12th March, 2026, when the rate of customs duty was 15%. The proper officer considered it necessary to subject the goods to a chemical test before the final assessment. The goods were therefore assessed provisionally at a value of ₹8,00,000, and Vedant Traders paid provisional duty of ₹1,20,000 on the same day. On 18th April, 2026, the company wants to voluntarily pay a further ₹90,000 as duty. Is Vedant Traders permitted to pay the duty on a provisional basis, and what conditions must be complied with before the provisional assessment is made?

Suggested Answer and Working Notes:

Provisional assessment of duty is permitted in case where the proper officer deems it necessary to subject any imported goods or export goods to any chemical or other test [Section 18 of the Customs Act, 1962]. Thus, Vedant Traders can pay the duty on provisional basis. Before, the provisional assessment of duty, the importer must furnish such security as the proper officer deems fit for the payment of the deficiency, if any, between the duty finally assessed/re-assessed and the duty provisionally assessed.

Topics: Customs: Levy of and Exemptions from Customs Duty

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