When does a Notification Come into effect?
WHEN does a notification issued under Section 5A of the Central Excise Act or Section 25 of the Customs Act come into effect?
This was a question I asked in the very first DDT on 01.12.2004.
The Notifications are supposed to come into effect on the date of its issue for publication. The CBEC normally issues notifications in the evening and they are available late in the evening or the next day, but they have come into effect from 0000 hours of the date shown in the notification irrespective of when the public or for that matter the Government officers responsible for implementing them come to know about it.
In many cases, the Customs officers are not aware of the increase in duty when they allow clearance. They would subsequently recover the enhanced duty, if the assessee is an established Industry. What would happen if the assessee cannot be traced easily? For example, the increase/decrease in tariff value of gold. The notification comes sometime in the evening and the Customs officer in the airport is not aware of it. What do they do when they assess the duty at a lower tariff value and realise that the value has been increased? They don't face this problem, because gold is generally not assessed in the airports!
It would be convenient to everybody if the notification itself specifies an effective date two or three days after issue of the notification. Heavens are not going to fall and coffers are not going to be emptied if the effect of the notification is postponed for a couple of days. Another archaic relic we are not able to get rid of!
The Telangana and AP High Court recently held that the Tariff Value Notification No. 36/2001-Cus(NT), dated 03.08.2001 was not effective from 03.08.2001, but a date on or after 06.08.2001. The Notification was held inapplicable for the imports made on 3.8.2001.
For more details of the case, please see Breaking News