A
2 only
B
Neither 1 nor 2
C
1 only
D
Both 1 and 2
Correct answer: (a) 2 only
Explanation
Statement 1 is incorrect because duty-free shops are not exempt from non-fiscal domestic regulatory laws. Statement 2 is correct as the Bombay High Court ruled that customs-bonded stores within Indian airports remain fully subject to public safety and health regulations.
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