Section 5:

5. When duty and taxes to be brought to account (1) This section shall apply where any goods, on which the whole or part of— (a) the duty under Part II or Part IIA of the First Schedule has been exempted; (b) the excise duty under Part IA of the First Schedule to the Excise Act has been exempted; or (c) the taxes under the Ninth Schedule to the Value Added Tax Act or under any other enactment have been exempted, and before the expiry of 3 years, in the case where the exemption is once every 3 years, or in any other case, before the expiry of 4 years from the date of the exemption— (i) the goods are sold or transferred; [Issue 5] C63 – 2 Revised Laws of Mauritius (ii) the goods are put to any use or applied to any object, other than that in respect of which the exemption was granted; or (iii) there has been a breach of any of the conditions attached to the exemption. (2) The importer of the goods or any person who intends to sell, transfer, use or apply the goods, other than those in respect of which the exemption was granted, or any person who may acquire or come into possession of the goods as a result of the sale or transfer, use or application, shall forthwith notify the Director-General of the fact, with such particulars as the DirectorGeneral may require, and, subject to subsection (3), pay the duty, excise duty and taxes in accordance with subsection (2A). (2A) (a) Where any goods are sold or transferred before the expiry of the 3-year or 4-year period referred to in subsection (1) without breach of the notification referred to in subsection (2) or of any of the other conditions attached to the exemption, the duty, excise duty and taxes shall be computed proportionately by reference to any time remaining due out of the 3-year or 4-year period, as the case may be. (aa) Notwithstanding subsections (1), (2) and (2A) (a), in the case of a motor vehicle or motorcycle purchased by an officer, or a beneficiary, in accordance with his entitlement, and transferred to his succession on his death, no duty, excise duty and taxes shall be claimed provided that the motor vehicle or motorcycle is not sold, transferred or disposed of within the time remaining due out of the 3-year period or 4-year period, as the case may be. (b) Subject to paragraph (a), where any goods to which subsection (1) applies— (i) are sold or transferred and there has been a breach of the notification referred to in subsection (2) or of any of the other conditions attached to the exemption; or (ii) are put to any use or applied to any object, other than that in respect of which the exemption was granted, the total amount of duty, excise duty and taxes which would have been payable, but for the exemption, shall become due and payable, together with a penalty not exceeding 50 per cent of the amount due and interest at the rate of 0.5 per cent per month or part of the month on the amount due from the time the goods have been exempted to the date of payment. (c) The Director-General shall compute the amount payable in accordance with paragraph (a) or (b) and issue, by registered post, to the person liable to pay the amount, a notice showing how the amount has been arrived at and the date by which the amount should be paid. (cid:11)d) Where a person is dissatisfied with a notice under paragraph (c), the person may, within 28 days of the date of the notice, object to the notice in such form as the Director-General may approve and send the form duly filled in to the Director-Ge hall compute the amount payable in accordance with paragraph (a) or (b) and issue, by registered post, to the person liable to pay the amount, a notice showing how the amount has been arrived at and the date by which the amount should be paid. (cid:11)d) Where a person is dissatisfied with a notice under paragraph (c), the person may, within 28 days of the date of the notice, object to the notice in such form as the Director-General may approve and send the form duly filled in to the Director-General by registered post. C63 – 3 [Issue 9] Customs Tariff Act (e) Where a person makes an objection under paragraph (d), he shall specify in the form the detailed grounds of the objection. (f) Where it is proved to the satisfaction of the Director-General that, due to illness or other reasonable cause, a person has been prevented from making an objection within the time limit specified in paragraph (d), the Director-General may consider the objection. (fa) Where the Director-General refuses to consider an objection made after the time limit specified in paragraph (d), he shall, within 28 days of the date of receipt of the letter of objection, give notice of the refusal to the person. (g) Any objection under this subsection shall be dealt with independently by an objection directorate set up by the Director-General for that purpose. (h) The burden of proving that the notice of the Director-General is incorrect, or what the notice should be, shall lie on the person. (2B) (a) The objection directorate referred to in subsection (2A) (g) shall consider an objection under subsection (2A) (d) or (f) and may— (i) review the notice; (ii) disallow or allow it in whole or in part; and (iii) where appropriate, amend the notice to conform with its determination. (cid:11)b) The Director-General shall, within 4 months of the date of receipt of the objection under subsection (2A) (d), give notice of the determination to the person and shall, at the same time, claim any duty, excise duty or taxes payable together with penalty and interest. (ba) Where the objection is not determined within 4 months under paragraph (b), it shall be considered to have been allowed by the DirectorGeneral. (c) Where a person is aggrieved by a determination under paragraph (b) or a decision under subsection (2A) (fa), he may, within 28 days of the date of the determination or decision, as the case may be, lodge written representations with the Clerk to the Assessment Review Committee in accordance with section 19 of the Mauritius Revenue Authority Act. (d) Where, in the notice of determination under paragraph (b), the amount of duty, excise duty or taxes, penalty and interest is claimed in that notice, such amount excluding penalty and interest shall, notwithstanding paragraph (c), be paid by the person not later than 28 days of the date of the notice. (3) (a) Where any goods to which subsection (1) applies have been damaged or rendered unserviceable, the Director-General may, at the option of the person liable to duty or excise duty, proportionately assess the duty or excise duty or part thereof and taxes which are payable, or require the goods to be destroyed. [Issue 9] C63 – 4 Revised Laws of Mauritius (b) Where goods referred to in paragraph (a) are destroyed, and any waste or scrap is put to any use in Mauritius, the amount of duty, excise duty or taxes payable shall be assessed as if the goods had been imported in that state. (3A) Where the National Transport Authority revokes t the person liable to duty or excise duty, proportionately assess the duty or excise duty or part thereof and taxes which are payable, or require the goods to be destroyed. [Issue 9] C63 – 4 Revised Laws of Mauritius (b) Where goods referred to in paragraph (a) are destroyed, and any waste or scrap is put to any use in Mauritius, the amount of duty, excise duty or taxes payable shall be assessed as if the goods had been imported in that state. (3A) Where the National Transport Authority revokes the licence of a taxi owner-driver who has benefited from an exemption of duty and excise duty in respect of his motorcar within a period of 4 years of its importation, in circumstances which would render the taxi-owner driver not eligible to the exemption, he shall pay the duty, excise duty and taxes which would have been payable but for the exemption. (3B) (a) Without prejudice to section 151 of the Customs Act and section 34 of the Excise Act, where duty, excise duty or taxes on any goods have been exempted and there has been a breach of any condition attached to the exemption, the Director-General may detain the goods and issue a notice showing how the amount has been arrived at and the date by which the amount should be paid. (b) Where goods are detained pursuant to paragraph (a), the Director-General shall— (i) where payment is effected within 28 days of the date of the notice under paragraph (a), release the goods; or (ii) where payment is not effected within the time limit referred to in subparagraph (i), seize the goods. (4) Any person who fails to comply with subsection (1) shall commit an offence and shall, on conviction, be liable to a fine equivalent to 3 times the duty, excise duty or taxes underpaid on the goods or 50,000 rupees, whichever is the higher, and any goods which are the subject matter of the offence shall be liable to forfeiture. (5) The prosecution of an offence under any section of this Act specified in the Fourth Schedule to the Mauritius Revenue Authority Act shall take place, at the discretion of the Director of Public Prosecutions, before a Judge sitting without a jury or the Intermediate Court. (6) (a) Where any motor vehicle or motorcycle imported by a returning citizen is not used by him by reason of his having to resettle overseas within the 4-year exemption period, as a result of being unable to settle in Mauritius or for any professional or other unexpected reason, the motor vehicle or motorcycle shall be taken, for the purpose of subsection (1) (ii), not to have been put to use other than that in respect of which the exemption was granted. (b) Paragraph (a) shall apply to every returning citizen whose case has not been determined by the Director-General as at 1 January 2013. [S. 5 amended by Act 25 of 1994; s. 8 (3) of Act 17 of 2003 w.e.f. 24 November 2004; s. 6 of Act 18 of 2003 w.e.f. 21 July 2003; s. 9 (b) of Act 15 of 2006 w.e.f. 1 July 2006 and 7 August 2006; s. 27 (4) (b) of Act 33 of 2004 w.e.f. 1 July 2006; s. 7 of Act 18 of 2008 w.e.f. 19 July 2008; s. 6 (b) of Act 26 of 2012 w.e.f. 1 January 2013; s. 5 of Act 26 of 2013 w.e.f. 21 December 2013; s. 13 of Act 9 of 2015 w.e.f. 14 May 2015; s. 12 (a) of Act 18 of 2016 w.e.f. 29 June 2016.] C63 – 5 [Issue 9] Customs Tariff Act 6. — . 7 of Act 18 of 2008 w.e.f. 19 July 2008; s. 6 (b) of Act 26 of 2012 w.e.f. 1 January 2013; s. 5 of Act 26 of 2013 w.e.f. 21 December 2013; s. 13 of Act 9 of 2015 w.e.f. 14 May 2015; s. 12 (a) of Act 18 of 2016 w.e.f. 29 June 2016.] C63 – 5 [Issue 9] Customs Tariff Act 6. —