TIOL-DDT 2711 · the untouched capture
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<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN" "http://www.w3.org/TR/html4/loose.dtd"> <html> <head> <title>Untitled Document</title> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> </head> <body> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=23157"><img src="http://www.taxindiaonline.com/RC2/image/stories/limca_book2015_1.jpg" alt="DDT in Limca Book of Records - Third Time in a row" width="300" height="148" hspace="5" border="0" align="right" ></a><strong><font color="#663399" size="3">TIOL-DDT 2711 </font><br> 26 10 2015<br> Monday</strong></font></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><em><strong><font color="#006600">Customs, Excise and Service Tax - Arrest/Prosecution - Monetary Limits Enhanced </font></strong></em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> CBEC has issued revised guidelines on prosecution under Central Excise, Customs and Service Tax. </font></p> <p align="justify"><font color="#FFFFFF" size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#623094" span="span">Central Excise and Service Tax: </font></p> <p align="justify"><font color="#FFFFFF" size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#BB0000">Highlights of the Board's instructions</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#F3DBCF"><strong>Monetary Limit - 1 Crore:</strong> </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> In order to optimally utilize limited resources of the Department, prosecution should normally not be launched unless evasion of Central Excise duty or Service Tax, or misuse of Cenvat credit in relation to offences specified under sub-section (1) of Section 9 of the Central Excise Act, 1944 or sub-section (1) of section 89 of the Finance Act, 1994 is equal to or more than Rs. One Crore. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#F3DBCF"><strong>Habitual evaders: : </strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> A company/assessee would be treated as habitually evading tax/duty or misusing Cenvat Credit facility, if it has been involved in three or more cases of confirmed demand (at the first appellate level or above) of Central Excise duty or Service Tax or misuse of Cenvat credit involving fraud, suppression of facts etc. in past five years from the date of the decision such that the total duty or tax evaded or total credit misused is equal to or more than Rs. One Crore. </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span">Offence register (335J)</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> may be used to monitor and identify assessees who can be considered to be habitually evading duty. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#F3DBCF"><strong>Authority to sanction prosecution:</strong> </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The criminal complaint for prosecuting a person should be filed only after obtaining the sanction of the Principal Chief/Chief Commissioner of Central Excise or Service Tax as the case may be. Once the sanction for prosecution has been obtained, criminal complaint in the court of law should be filed as early as possible by an officer of the jurisdictional Commissionerate authorized by the Commissioner. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#F3DBCF"><strong>Prosecution should not be filed merely because a demand has been confirmed in the adjudication proceedings particularly in cases of technical nature or where interpretation of law is involved. </strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">One of the important considerations for deciding whether prosecution should be launched is the availability of adequate evidence. The standard of proof required in a criminal prosecution is higher as the case has to be established beyond reasonable doubt whereas the adjudication proceedings are decided on the basis of preponderance of probability. Therefore, even in cases where demand is confirmed in adjudication proceedings, evidence collected should be weighed so as to meet the test of being beyond reasonable doubt for recommending prosecution. Decision should be taken on case-to-case basis considering various factors, such as, nature and gravity of offence, quantum of duty /tax evaded or Cenvat credit wrongly availed and the nature as well as quality of evidence collected. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#F3DBCF"><strong>Publication of names of persons convicted: </strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Section 9B of the Central Excise Act, 1944 also made applicable to Service Tax vide section 83 of the Finance Act, 1994 grants power to publish name, place of business etc. of the person convicted under the Act by a Court of Law. The power is being exercised very sparingly by the Courts. It is directed that in deserving cases, the department should make a prayer to the Court to invoke this section in respect of all persons who are convicted under the Act. </font></p> <p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTg2ODQ=" target="_blank">CBEC Circular No.1009/16/2015-CX, Dated: October 23, 2015</a></strong></font></strong></p> <p align="justify"><strong><font size="3" face="Georgia, Times New Roman, Times, serif"><em><font color="#006600">Arrest </font></em></font></strong></p> <p align="justify"><font color="#FFFFFF" size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#623094" span="span">Central Excise and Service Tax: </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">With the enhancement in Prosecution limits, the CBEC has also enhanced the monetary limits for arrest. Henceforth, arrest of a person in relation to offences specified under clause (a) to (d) of sub-section (1) of Section 9 of the Central Excise Act, 1944 or under clause (i) or (ii) of sub-section (1) of section 89 of the Finance Act, 1994, may be made in cases where the evasion of Central Excise duty or Service Tax or the misuse of Cenvat Credit is equal to or more than rupees <strong>one crore</strong>. Central Excise circular no. <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=31&filename=notification/excise/2013/excircular974.htm" target="_blank"><strong>974/08/2013-CX</strong> </a> and Service Tax circular no. <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=40&filename=notification/servicetax/2013/sercir171.htm" target="_blank">171/6/2013-ST </a></strong>both dated </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span">17-7-2015</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> stand amended accordingly. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTg2ODM=" target="_blank">CBEC Circular No.1010/16/2015-CX, Dated: October 23, 2015 </a></strong></font></p> <p align="justify"><font color="#FFFFFF" size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#623094" span="span">Customs - Prosecution: </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#F3DBCF"><strong>Baggage and Outright smuggling cases: </strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Cases involving unauthorized importation in baggage / cases under Transfer of Residence Rules, where the CIF value of the goods involved is Rs. <em>20, 00,000/</em>- (Rupees twenty lakh) or more; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Outright smuggling of high value goods such as precious metal, restricted items or prohibited items notified under section 11 of the Customs Act, 1962 or goods notified under section 123 of the Customs Act, 1962 or foreign currency where the value of offending goods is Rs. 20,00,000 (Rupees twenty lakh) or more. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#F3DBCF"><strong>Appraising Cases/ Commercial Frauds: </strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">where CIF value of the offending goods is Rs. 1,00, 00,000 (Rupees one crore) or more. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#F3DBCF"><strong>Publication of names of persons convicted: </strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Section 135-B of the Customs Act, 1962, grants the power to publish name, place of business etc. of persons convicted under the Act by a Court of law. It is observed that this power is being exercised very sparingly. In all cases in respect of all persons, who are convicted under the Customs Act, 1962 the department should make a prayer to the Court to invoke this section. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTg2ODg=" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC Circular No.27/2015-Cus, Dated: October 23, 2015</strong></font></a></p> <p align="justify"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Arrest </font></em></strong></font></p> <p align="justify"><font color="#FFFFFF" size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#623094" span="span">Customs: </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">With the enhancement in Prosecution limits, the CBEC has also enhanced the monetary limits for arrest. </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) Cases involving unauthorised importation in baggage/ cases under Transfer of Residence Rules, where the CIF value of the goods involved is Rs. 20,00,000/- (Rupees Twenty Lakh) or more; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) Cases of outright smuggling of high value goods such as precious metal, restricted items or prohibited items or goods notified under section 123 of the Customs Act, 1962 or offence involving foreign currency where the value of offending goods is Rs. 20,00,000/- (Rupees Twenty Lakh) or more; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) In a case related to importation of trade goods (i.e. appraising cases) involving wilful mis-declaration in description of goods/concealment of goods/goods covered under section 123 of Customs Act, 1962 with a view to import restricted or prohibited items and where the CIF value of the offending goods is Rs. 1,00,00,000/- (Rupees one crore) or more; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(d) Fraudulent availment of drawback or attempt to avail of drawback or any exemption from duty provided under the Customs Act, 1962, if the amount of drawback or exemption from duty is Rs. 1,00,00,000/- (Rupees One Crore) or more. In cases related to exportation of trade goods (i.e. appraising cases) involving (i) wilful mis-declaration in value / description; (ii) concealment of restricted goods or goods notified under section 11 of the Customs Act, 1962, where FOB value of the offending goods is Rs. 1,00,00,000/- (Rupees One Crore) or more. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(e) The above criteria of value mentioned in sub para 2.3 (a) to 2.3 (d) would not apply in cases involving offences relating to items i.e. FICN, arms, ammunitions and explosives, antiques, art treasures, wild life items and endangered species of flora and fauna. In such cases, arrest, if required, on the basis of facts and circumstances of the case, may be considered irrespective of value of offending goods involved. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTg2ODc=" target="_blank">CBEC Circular No.28/2015-Cus, Dated: October 23, 2015</a></strong></font></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Publication of names of persons Arrested? </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Circulars state, "<em>Section 9B of the Central Excise Act, 1944 also made applicable to Service Tax vide section 83 of the Finance Act, 1994 grants power to publish name, place of business etc. of the person convicted under the Act by a Court of Law. The power is being exercised very sparingly by the Courts. It is directed that in deserving cases, the department should make a prayer to the Court to invoke this section in respect of all persons who are convicted under the Act.</em>" </font></p> <p align="justify"><font color="#FFFFFF" size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#623094" span="span">Can they publish names of arrested persons? </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Board wants the officers to ask the Court's permission to publish names of convicted persons, but today we find officers rushing to the Press with names of persons whom they arrest. What action will the Board take against officers hastily and illegally publishing names of arrested persons? </font></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Customs Documents - Digital Signature Mandatory? </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> terms of Board Circular No <a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTc4NTk=" target="_blank"><strong>10/2015-Custom</strong>s</a>, dated 31.03.2015, importers registered under Accredited Client Programme (ACP) are mandatorily required to file Bills of Entry with digital signature with effect from 01.05.2015.Wherever the customs process documents are digitally signed, the Customs will not insist on the user to physically sign the said documents. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In order to increase coverage of digitally signed documents and subsequent phasing out of physical /manual submission of documents, CBEC has decided that all importers, exporters using services of Customs Brokers for </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span">formalities</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> under Customs Act, 1962, shipping lines and air lines shall file customs documents under digital signature certificates mandatorily with effect from 01.01.2016. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The importers/ exporters desirous of filing Bill of Entry or Shipping Bill individually may however have the option of filing declarations/ documents without using digital signature. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Wherever the customs process documents are digitally signed, the Customs will not insist on the user to physically sign the said documents. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTg2ODU=" target="_blank">CBEC Circular No.26/2015-Cus, Dated: October 23, 2015</a></strong></font></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more <strong>DDT</strong></font></p> <p align="justify"><strong><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice day. </font></strong></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail your comments to</font> <font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="mailto:vijaywrite@tiol.in" target="_blank"><strong>vijaywrite@tiol.in</strong> </a></font></p> </body> </html>