TIOL-DDT 2885 · 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 align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=26988"><img src="http://www.taxindiaonline.com/RC2/image/stories/limca_book2016.jpg" alt="DDT in Limca Book of Records - Third Time in a row" width="252" height="220" hspace="5" border="0" align="right" ></a></font><font color="#663399" size="3">TIOL-DDT 2885</font><br> 11 07 2016<br> Monday</strong></font></p> <p align="center"><font color="#006600" size="3" face="Georgia, Times New Roman, Times, serif"><strong><em>Customs - Rate of Interest - CBEC Rescinds the Wrong Notification</em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> exercise of the powers conferred by clause (ii) of sub-section (2) of Section 61 of the Customs Act, the CBEC has rescinded Notification No. 18/2003-Customs, dated 1st March 2003.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Section 61(2) as amended by Finance Act 2016 reads as:</font></p> <blockquote> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Where any warehoused goods specified in clause (c) of sub-section (1) remain in a warehouse beyond a period of ninety days from the date on which the proper officer has made an order under sub-section (1) of section 60, interest shall be payable at such rate as may be fixed by the Central Government under section 47, on the amount of duty payable at the time of clearance of the goods, for the period from the expiry of the said ninety days till the date of payment of duty on the warehoused goods :</font></em></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So, this Section fixes the interest rate for warehoused goods as the rate fixed under Section 47 which is 15% vide Notification No. <strong><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=OTY5OQ==" target="_blank">28/2002-Cus(NT)</a></strong>, dated 13.05.2002.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 18/2003-Cus, dated 01.03.2003 which the CBEC has now rescinded, relates to the amendment to the Customs Tariff and has nothing to do with the rate of interest for warehoused goods.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What the Board wanted to rescind was obviously Notification No. <strong><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=OTE2Mw==" target="_blank">18/2003-Cus(NT)</a></strong>, dated 01.03.2003. That is instead of rescinding a Non Tariff Notification, they rescinded a Tariff Notification. They just forgot to put NT in that notification, but this small slip is a major blunder. I am sure they will silently add that NT in the Notification and replace the notification in their website making all those who downloaded the notification earlier from their website look silly, foolish and wrong. But that is how the Board usually corrects its unpardonable blunders. Rarely do they allow assessees to correct their mistakes.</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=MjAxNjk=" target="_blank">Notification No. 98/2016-CUSTOMS., Dated: July 08, 2016</a></strong></font></p> <p align="center"><font color="#006600" size="3" face="Georgia, Times New Roman, Times, serif"><em><strong><a name="f1"></a>CBEC Taxpayer's Experience Survey -Chairman's Concern</strong></em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC</strong> has for the second year running, conducted a taxpayer's experience survey in association with FICCI and KPMG and the findings have been partly and selectively released, especially the fact that 72% of the respondents have felt a perceptible change in policies of the Tax Department by way of becoming liberal and friendly to the taxpayer. While congratulating the officers of the Department, the CBEC Chairman in a D.O. Letter to all his Chief Commissioners says, <em>"We cannot, however, afford to sit on our laurels."</em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Chairman shared some preliminary concerns with his officers.</font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. A constant refrain has been the need for attitudinal change by us at the cutting edge level in treating the taxpayer. Taxpayers are our partners and need to be treated as such.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. The survey points out also on the need for focusing on tax evaders - it is nobody's case that this segment of taxpayers who give everybody a bad name, should be treated softly.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Training is an extremely important element in this entire aspect. While NACEN and its regional units will be tasked to hold regular training sessions obviously each Commissionerate should also have in house training workshops. We have a lot of talent amongst our officers which should be made use of for imparting such trainings. This is particularly important, given that one of the findings of the survey was that the spate of reforms initiated by the CBEC through various instructions/circulars does not seem to have reached the field formations.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. As was brought out by a panel list in the recently held Rajaswa Gyan Sangam, 2016, we should strive to be knowledgeable, professional and helpful.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. It is also incumbent on each one of us to ensure close supervision and monitoring. Timely disposal of adjudication, refund and queries of the trade is essential in creating a conducive environment.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. I would also urge you to ensure regular interaction with the trade and the officers and have a feedback mechanism whereby suggestions for ease of doing business should be encouraged.</font></p> </blockquote> <p align="center"><font color="#006600" size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><a name="f2"></a>The Survey - Some Findings</em></strong></font></p> <p align="justify"><font color="#FFFFFF" size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#000000" span="span"><strong>KEY</strong> Concerns in the Previous Survey:</font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- Taxpayers treated like tax-evaders</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- Revenue biased approach</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- Lack of clarity on tax issues</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- Significant delay in grant of refund claims and rejection of refund claim on trivial grounds</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- Unwarranted litigation</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- Persistent delay in responding to queries / concerns of taxpayers</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- Need for continuous follow-up for any response or action</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- Lack of customer service approach</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- Huge burden of manual / physical documentation</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- Intermittent transfer of officers without proper handover / takeover arrangements</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- Lack of transparency and undue expectations by field formations</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- Introduce fair and transparent quasi-judicial adjudication process</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- Create environment for officers to take independent decisions</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- Expedite dispute resolution</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- Clarify stand of revenue on contentious issues upfront</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- Timely finalisation of provisionally assessed bills of entries and processing of refund claims</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- SAD refund - Requirement of filing original sales invoices should be withdrawn / relaxed</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- Easy process of cancellation of bonds / undertaking etc. submitted at the time of import</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- Remove requirement for producing original purchase invoice at the time of de-bonding of assets</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- Consequential refund arising out of favourable appellate orders should be <em>suo-moto</em> processed</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- Broad base CENVAT credit mechanism and allow credit for all input services</font></p> </blockquote> <p align="justify"><font color="#FFFFFF" size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#000000" span="span">Some Suggestions in the 2016 Survey:</font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">• Change in overall approach of CBEC is not visible at the lower level staff</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">• Discontinue the practice to visit business premises for collecting information</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">• Automatic escalation of pending/overdue matters to Commissioner/Chief Commissioner</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">• Authorities should be made accountable for delay in responding to taxpayers' requests</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">• Expedite transfer of files in case of change in jurisdiction</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">• Quality of interactions at the field formation level needs to improve</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">• Periodical training of personnel on behavioral, technical knowledge and technology aspects</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">• Need to improve infrastructure of tax offices</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">• Display sensitivity and urgency towards business needs</font></p> </blockquote> <p align="center"><font color="#006600" size="3" face="Georgia, Times New Roman, Times, serif"><em><strong><a name="f3"></a>Chief Commissioner's Directives</strong></em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CHIEF</strong> Commissioner of Customs, Mumbai held a meeting with his Group A officers (AC and above) on 21st June 2016. He exhorted the officers to be sensible, responsive, transparent and receptive towards their sphere of work. His major directions:</font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Punctuality is a virtue which we could not forego. The trade should not have any difficulty in getting their work done merely for the reason that some officer was not available in office well within time. All the officers should reach in time and late coming needs to be avoided. The <strong>concerned</strong> DC/ACs should also ensure that their supporting staff also reach in time to the office so that there is no delay in the clearance and the trade does not suffer. Even if the officer is late on the previous day owing to some occupation, it should not be taken as ruse to come late.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Officers should not raise frivolous and repeated queries. The queries should be specific and justify the need of raising such queries since such queries unnecessarily raise the dwell time and create inconvenience to the trade. The documents should be thoroughly checked at the first instance and repeated queries should not be raised.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. All attempts should be made to fasten the clearance of goods while saving the interests of Revenue and there should not be delay in the clearance of the goods.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. There should not be fear of taxman but fear of law.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. The image of the department which has been tarnished of late, due to bad reporting has to be revived with better reports and all the officers should thrive to improve the image of the Department with sincere and dedicated work. The DC/ACs should also ensure that the message is passed on to their subordinate staff as well to ensure better probity.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. Dwell time should be reduced. Law and probity should be strictly adhered to.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7. We should always act as pioneer in the best practices all across the nation and set examples for others to be followed.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8. The DRI/CIU/SIIB/CSD alerts should be attended on top priority. If any alerts regarding containers on hold is received the same should be attended to immediately and such containers should be traced immediately and the <strong>concerned</strong> agencies to be informed accordingly on urgent basis.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9. Document Management System needs immediate attention as complaints are being received in this office that the documents are not being forwarded regularly from the CFSs. All DC/ACs should ensure that the dockets of the Bills of Entry are forwarded to the <strong>concerned</strong> section immediately for necessary action.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10. Longstanding and unclaimed/uncleared containers must be identified and list of all such containers should be forwarded to the Disposal Section for further necessary action.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">11. The DC/ACs should ensure 100% commitment and truthfulness to the Department and it should be ensured that their subordinate staff follow the same. We should strive to continue to be meaningful and relevant in our areas of work.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">12. All areas of work such as Adjudication, Audit, PCA, Revenue Recovery should be accorded due priority and all targets assigned to this zone should be met with.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">13. Entry of un-authorised persons inside the officers' cabin should be restricted. Officers should be vigilant and restrict the un-authorised persons entry inside CFSs and also inside the officers cabins.</font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But aren't these things which the officers are employed and paid for, without the Chief Commissioner exhorting them. Should senior officers be exhorted to come to office punctually?</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com//RC2/pdfdocs/Minutes_of_CCFC%20meeting_dated_01.07.2016.pdf" target="_blank">JNCH Chief Commissioner F.No. S/V-30-Misc-210/2016 CCO-M-II., Dated July 01 2016</a></strong></font></p> <p align="center"><font color="#006600" size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><a name="f4"></a>New President of CESTAT - When can he join?</em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Appointments Committee of the Cabinet (ACC) has approved the proposal for appointment of Justice (Dr.) Satish Chandra, former Judge of the Allahabad High Court to the post of President in Customs, Excise and Service Tax Appellate Tribunal (CESTAT) w.e.f. the date of assumption of charge of the post for a period of 03 years, or till he attains the age of 65 years, or until further orders, whichever is the earliest.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Justice Dr. Satish Chandraan LL.M and LL.D, is a judge with high academic credentials. He worked as a Member of the ITAT for 11 years before becoming a judge of the Allahabad High Court where he worked for about seven years.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But there is a twist in the appointment. He is already the Chairman of the 3 rd Pay Revision Committee for the Central Public Sector Enterprises, having been appointed just a month ago. This Committee is to give its report to the Government by December 2016. Can the new president join CESTAT before December?</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">I called up the Hon'ble Justice to congratulate him. He said he didn't have any official information about the appointment and came to know about it from our flash only. So, I couldn't embarrass him with any question about his new job. The Revenue Department is to issue the appointment offer soon.</font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MjAxNjg=" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DoPT F.No.18/27/2016-EO(SM.II)., Dated: July 08, 2016</strong></font></a></p> <p align="center"><font color="#006600" size="3" face="Georgia, Times New Roman, Times, serif"><em><strong><a name="f5"></a>Pre Show Cause Notice Consultation</strong></em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> the instruction issued vide F No 1080/09/DLA/MISC/15 dated 21st December 2015, CBEC stated,<em> Pre show cause notice consultation with the Principal Commissioners and Commissioners is being made mandatory prior to issue of SCN in the case of demands of duty above Rs. 50 Lakhs (except for preventive/offence related SCNs).</em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Certain doubts have been expressed with regard to this. Board clarifies that the pre show cause notices consultation shall be done by the adjudicating authority with the assessee concerned. This is a step towards trade facilitation and promoting voluntary compliance and also to reduce the necessity of issuing show cause notice.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com//RC2/pdfdocs/shwcause-notice-above-50lakh.pdf" target="_blank">CBEC Instruction in F No 1080/11/DLA/CC Conference/2016/1208., Dated: July 08, 2016</a></strong></font></p> <p align="center"><font color="#006600" size="3" face="Georgia, Times New Roman, Times, serif"><em><strong><a name="f6"></a>GST - The Revenue Road Show</strong></em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>TO</strong> sensitize the trade, industry and commerce the CBEC has undertaken Nation Wide interactions and this series is scheduled to commence from Hyderabad today.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Mr. B.N. Sharma, Additional Secretary, Dept. of Revenue, Govt. of India and Mr. Ram Tirath, Member - Budget/GST, CBEC are to interact with trade and industry along with the Director General Systems and Director General GST, CBEC besides the officials of the Govt. of Telangana today at FTAPCCI, Hyderabad.</font></p> <p align="center"><font color="#006600" size="3" face="Georgia, Times New Roman, Times, serif"><em><strong><a name="f7"></a>Revenue Boom</strong></em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Indirect Taxes Revenue for the first quarter of 2016-17 has seen a phenomenal hike in Revenue Collection with a 30.8% growth. Central Excise sees a rise of 50.1%. The total Indirect Taxes Revenue is nearly Rs. 2 lakh crores.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The direct tax collections upto June, 2016 indicate net revenue collection of Rs.1.24 lakh crore which is a growth of 24.79% over the corresponding period last year.</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"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Have a nice Day.</strong></font></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail your comments to <a href="mailto:vijaywrite@tiol.in" target="_blank"><strong>vijaywrite@tiol.in</strong></a></font></p> </body> </html>