Customs - Drawback - deemed Imported Goods - CBEC amends wrong notification
AS per Section 75 (1A) of the Customs Act,
(1A) Where it appears to the Central Government that the quantity of a particular material imported into India is more than the total quantity of like material that has been used in the goods manufactured, processed or on which any operation has been carried out in India and exported outside India, then, the Central Government may, by notification in the Official Gazette, declare that so much of the material as is contained in the goods exported shall, for the purpose of sub-section (1), be deemed to be imported material.
In exercise of the power conferred by the above Section, the Government had issued Notification No. 44/91-Cus, dated 30.05.1991, declaring the whole of the material specified in the Table, contained in the goods manufactured in India and exported, deemed to be imported material. The Table contained a list of 100 materials like butyle rubber, cobalt, tungsten etc.
Now, the Government notified an amendment to the notification to omit certain items from the Table annexed to the notification.
All the items except the following five are omitted:
8. Butyl Rubber; 20. Cobalt; 59.Nickel; 75.Selenium and 84. Wattle extract.
For five items should they keep a list of 100?. Now the list will show 95 items as deleted. Anyway that is their choice, but they have amended the wrong notification. They have amended Notification No.44/91-Customs (N.T.) dated the 30th May, 1991.
Notification No. 44/91-Customs (N.T.) actually prescribes the exchange rates. What they wanted to amend was the notification No. 44/91-Customs, not the NT notification.
To be fair to the present wise men in the Board, it has to be mentioned that this is not their original mistake. The mistake was committed by the Board in 2004, when they by Notification No. 133/2004- Cus(NT) dated 25.11.2004 amended the Notification No.44/91-Customs (N.T.) instead of amending the No.44/91-Customs.
In short they amended a 'Customs NT notification' instead of amending a customs notification.
In effect all the 95 items supposed to have been deleted from the list are very much alive in the notification No.44/91-Customs as they amended a wrong notification. If the lawmakers read this, they will come up with a new notification soon and most probably they will supersede No.44/91-Customs and come up with a new notification listing those five items.
Notification manufacture is not all that an easy industry.
Notification No., Dated: April 16, 2015