TIOL-DDT 2810 · the untouched capture
Rendered as it looked. Links and images are disabled in this view; the file itself is untouched.
<!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><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><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 2810 </font><br> 18 03 2016 <br> Friday </strong></font></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><em><strong><font color="#006600">Customs - CVD on Castings for wind-operated electricity generator - Not figuring in ICES Directory </font></strong></em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BY</strong> Notification No. 1/2016-Customs (CVD) dated 19.1.2016, the Government has imposed countervailing duty on Castings for wind-operated electricity generators, whether or not machined, in raw, finished or sub-assembled form, or as a part of a sub-assembly, or as a part of an equipment/component meant for wind-operated electricity generators, originating in or exported from China. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If you feel like paying this duty, it is not all that easy. This notification has not been updated in the ICES Directory.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, the Jawaharlal Nehru Customs, Nhava Sheva has directed its officers to thoroughly assess, examine and audit all such imports and ensure collection of the CVD so imposed in the Notification. The <font color="#FF0000"><em><strong>concerned </strong></em></font>Group is also directed to issue necessary Show Cause Notice/less charge for the consignments already cleared.</font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTk0MDk=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">JN Customs Standing Order No. 23/2016., Dated: March 17, 2016 </font></strong></a></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600"><a name="f1"></a>Customs - Simplified procedure for amendments in Import General Manifest </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> a trade facilitation measure, a consolidated guideline for carrying out amendment to the IGM is issued by JN Customs with twin objectives of ease of doing business and to reduce the dwell time of imported cargo clearance.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The need for adjudication in case of IGM amendments, will arise only, in cases, where there are major amendments involving fraudulent intention or substantial revenue implication,arising from the amendments. Hence, except such cases, in all other cases no adjudication shall be undertaken and the approval of IGM amendments will be given on file. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The minor amendments shall be approved promptly and in no case beyond 24hours of the submission of complete application along with all the required documents. All major amendments shall be approved within 48 hours of the submission of the complete application. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What are major and minor amendments? </font></p> <p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Minor Amendments: </font></strong></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Change in Importer's Address </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Correcting any spelling mistake </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Conversion from one unit of measurement to another </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Change in container No. (only alphabetic prefix and the last 10th test numerical) </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. Change/Addition of marks and number </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. Conversion from local to TP/SMTP and vice-versa </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7. Port of loading </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8. Size of containers (no change in weight of consignment) </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9. Port of discharge </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10. Type of packages </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">11. Number of packages(no change in weight) </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">12. Seal Number </font></p> </blockquote> <p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Major Amendments: </font></strong></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">13. Addition of extra entries </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">14. Amendment in the quantity of goods already declared </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">15. Changing the date of the Bill of Lading in the IGM </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">16. Changing the Importer's/Consignee name </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">17. Commodity description </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">18. Cargo to Un-accompanied baggage and vice-versa </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">19. Any Other Amendment </font></p> </blockquote> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTk0MDg=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">JN Customs Facility Notice No. 47/2016., Dated: March 15, 2016 </font></strong></a></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600"><a name="f2"></a>Remedial Action on Audit Objections - CBDT Directions </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBDT</strong> directs that: </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) An Audit objection should be accepted and remedial action should be taken in a case where the audit objection relating to an error of facts or an issue of law is found to be correct. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) Appropriate remedial action should invariably be initiated within two months of the receipt of the Local Audit Report, and necessary orders should be passed within six months thereafter.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) Where the PCIT/ CIT does not accept the Audit objection, he may record his reasons for doing so and inform the AG accordingly within two months from the date of receipt of the LAR. No remedial action needs to be taken in such cases. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Second appeal in cases involving Revenue Audit Objection:</strong> The adverse order of the first appellate authority in cases involving revenue audit objections should be carefully scrutinised by the PCIT/ CIT, and appeal should not be preferred if the order is justified either in law or on facts. Reasons for not filing appeal may be recorded by the PCIT/ CIT. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTk0MDY=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT Circular No. 8/2016., Dated: March 17, 2016</font></strong></a></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600"><a name="f3"></a>Safeguard Duty on HR Steel </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT </strong>had imposed safeguard duty on HR Steel in coils of a width of 600 mm or more falling under heading 7208 or tariff item 7225 30 90 of the Customs Tariff with effect from 14.9.2015 and is to expire on 31st March 2016. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The DG, Safeguards has recommended imposition of safeguard duty for a period of two Years and Six months. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This period shall be computed from the date of levy of provisional safeguard duty vide notification no.2/2015-Cus (SG) dated 14.09.2015 at 20% (minus ADD if any) from 14.09.2015 to 13.09.2016; at 18% from 14.09.2016 to 13.03.2017; at 15% from 14.03.2017 to 13.09.2017; at 10% from 14.09.2017 to 13.03.2018. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As the imports from developing nations except China PR and Ukraine do not exceed 3% individually and 9% collectively, the import of product under consideration originating from developing nations except China PR and Ukraine will not attract Safeguard Duty in terms of proviso to Section 8B (1) of the Customs Tariff Act, 1975. Turkey vide Notification No. 19/2016-Customs (N.T.) dated 05.02.2016 has been recognised as a developing nation. Therefore, Imports of the product under consideration originating from Turkey will not attract Safeguard Duty w.e.f. 05.02.2016. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/pdfdocs/wnew/FF_HRC_Eng.pdf" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DG Safeguard Notification., Dated March 15, 2016 </font></strong></a></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600"><a name="f4"></a>Customs - New Exchange Rates from Today </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC</strong> has notified new exchange rates for Imported Goods and for Export Goods with effect from today. The USD is 67.45 Rupees for imports and 66.40 Rupees for exports. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTk0MDU=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 41/2016-Cus (NT)., Dated: March 17, 2016 </font></strong></a></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600"><a name="f5"></a>FTP - SION- Chemicals - Notified </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT</strong> has notified Standard Input Output Norms (SION) for certain export products falling under the Chemicals and Allied Products Group. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTk0MDc=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Public Notice No.64/2015-2020., Dated March 17, 2016 </font></strong></a></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600"><a name="f6"></a>AG Audit doubts correctness of DG Audit Data </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CAG in its latest report to Parliament on Central Excise observed: </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- Central Excise revenue has shown 11.56 per cent growth in FY15compared to FY14. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- During FY15, increase in Central Excise duty on petrol and high speed diesel resulted not only in increase of Central Excise collection from petroleum sector but also lead to overall growth of Central Excise. Except Petroleum products and plastic, revenue growth in other sectors is either stagnant or negative. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- Huge amount of Central Excise revenue amounting to Rs. 81,538 crore is blocked in appeals. The amount is increasing every year. Despite a number of measures initiated by the Board, locking up of such a large revenue is a matter of concern. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- Less than 50 per cent of the assessees registered as SSI units in the selected ranges are actually availing the benefit of the SSI exemption.SSI manufacturer of intermediate goods is not benefited out of the scheme. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- Annual report published by DG (Audit) for the years 2011-12 and2012-13 had discrepancies in figures compared to Quality Assurance Review (QAR) reports, doubting the correctness of published data. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- During 2011-12 and 2012-13, 22 and 29 Commissionerates in respect of Central Excise and 18 and 21 Commissionerates in respect of Service Tax were downgraded <em>vis-a-vis</em> previous year grading, showing drop in performance of internal audit. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- In 41 Commissionerates (Central Excise), 39 Commissionerates(Service Tax) and nine Commissionerates (Customs), no reconciliation was being done and consequently revenue of Rs. 2,36,295 crore, Rs. 3,01,436 crore and Rs. 82,224 crore respectively, pertaining to these Commissionerate, remained unreconciled for the period 2011-12 to2013-14. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- SCN invoking extended period on incorrect grounds in contravention of statute resulted in SCNs being time barred in the adjudication in 20cases involving revenue of Rs. 4.40 crore. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- There were 34 instances of deficiencies in internal audit carried out by departmental officials and other issues involving revenue of Rs. 32.76 crore. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- In Ranchi Commissionerate a SCN was issued to M/s SAIL, Bokaro in May 2011 for contravention of provision of Section 4(1)(b) of Central Excise Act and Valuation Rule 2000 for evading payment of Rs. 5.32 lakh for the period 2006-07. In response to the SCN, M/s SAIL Bokaro had submitted its reply on 14 May 2012 with request to give personal hearing before the final decision. But no date was granted to the assessee by the department nor any other action has been taken in this case. The case has not been adjudicated even after a lapse of more than two years.The Ministry stated (November 2015) that the case will be adjudicated soon. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- On scrutiny of the SCNs and Adjudication files in five Commissionerates, it was noticed that the first Personal Hearing was fixed after inordinate delay in20 cases. It is observed that there was delay ranging between 371 days and4,641 days which resulted in adjudication process getting delayed. When pointed this out (June 2014), the Ministry accepted (November 2015) the facts in most of the cases and stated that reason for delay is due to change of adjudication authorities and time taken in verification of facts mentioned in the SCN for following the principles of natural justice. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- Scrutiny of records in 23 Commissionerates and Divisions revealed that the department failed to adjudicate in 342 cases within the prescribed timeframe of one month from the date of conclusion of personal hearing. The delay ranges between 2 days to 333 days (in excess of 30 days from the date of completion of last personal hearing granted to the parties.When we pointed this out (between June 2014 and November 2014), the Ministry while admitting the facts (November 2015) stated that in most of the cases the delay was due to seeking comments from division office in respect of reply filed by noticee, non- submission of additional documents timely by the assessees. Further, it was reiterated that the Adjudication authority always try to dispose of the cases within prescribed time limit inmost of cases but in certain cases where some difficult question of law cropsup and where the case law and defence require detailed examination <em>vis-à-vis</em> the allegations of SCN, strict adherence to time limit prescribed is not feasible.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- <strong>Conclusion:</strong> It was noticed during audit that the journey of SCN right from the first step of issue of SCN till its adjudication was fraught with delays and short comings. Administrative efficiency requires that the work is done in minimum possible time. The maximum time limits define the outer boundaries for completion of tasks. The time limit prescribed for issue of SCN was one year with provision to invoke extended period of five year for specific circumstances. But instead, it was seen that the extended period was used as a routine provision rather than a rare exception. Thus there is a need to reduce delays in various stages of issue and processing of SCN by systematic monitoring so that interests of both the government revenue and the assessee are protected. </font></p> </blockquote> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Monday 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 weekend. </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>