TIOL-DDT 432 · the untouched capture
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<html> <head> <meta http-equiv=Content-Type content="text/html; charset=windows-1252"> <title>Taxindiaonline's DDT 402</title> </head> <body> <div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399" size="3">TIOL-DDT 432</font><br> 22 08 2006<br> Tuesday</b> </font></div> <p align="center" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">SEZ Act has over riding effect – Customs officers, please note!</font></strong></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>The commerce ministry has received representations that customs and excise officers are not following the provisions of the SEZ Act and Rules. So they have clarified that:-</strong></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 1. The SEZ Act along with SEZ Rules has become operative w.e.f. 10th February, 2006. Now all the activities relating to the SEZ shall be guided by the provisions contained in the SEZ Act, 2005 and the SEZ Rules, 2006.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 2. By virtue of Section 51 of the SEZ Act, the provisions of the SEZ Act and the Rules will have overriding effect over the provisions contained in any other Act.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 3. Chapter X-A of the Customs Act, 1962, the Special Economic Zones Rules, 2003, and the Special Economic Zones (Customs Procedures) Regulations, 2003 have become inoperative w.e.f. 10th February, 2006.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 4. With effect from 10th February, 2006 the activities relating to SEZs are guided by the provisions contained in the SEZ Act, 2005 and the SEZ Rules, 2006. Chapter X-A of the Customs Act, the Special Economic Zones Rules, 2003, and the Special Economic Zones (Customs Procedures) Regulations, 2003 are not in operation.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 5. Clearances of excisable goods to SEZ shall now be in terms of Rule 30 of the SEZ Rules, 2006.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 6. The provisions of Sections 20, 21 and 22 of the SEZ Act relating to Single Agency, Single Enforcement Officer and inspection, search and seizure have not yet been operationalised. Hence, so long as these Sections are not operationalised, different agencies and officers, as empowered under the relevant Acts before enactment of the SEZ Act, will continue to operate till such time these provisions of the SEZ Act take effect.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 7. The size of social infrastructure like residential complexes, hotels, hospitals, Schools and other similar facilities shall be decided by the Approval Committees based on the guidelines to be issued by the Board of Approval. The guidelines are under preparation and will be issued shortly. Any infrastructure created in excess thereof shall not be eligible for any duty and tax concessions to the developer or co-developer as provided in Section 26 and Section 27 of the Special Economic Zones Act, 2005.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 8. At the time of import of goods into the SEZ, the assessment of bill of entry shall be on the basis of the value declared by the SEZ units. However, when the goods are cleared in the domestic market, then the assessment of the goods will be as is being done in the case of import of goods for home consumption.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 9. in case of import of goods by DTA importers through port, airport, ICD etc. located in a SEZ, the assessment shall be carried out by the Jurisdictional Customs Authorities and not by the SEZ Customs. SEZ Customs shall be responsible only for examination and delivery of goods.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 10. Rule 73 provides for authorization of a Gazetted Officer of Customs by the Development Commissioner as Specified Officer, in cases when a Specific Officer is not posted in a SEZ. Since such situation would ordinarily arise in all newly notified SEZs, the jurisdictional Development Commissioners may issue such authorizations for officials to be identified in consultation with the jurisdictional Commissioner Customs or Commissioner Central Excise, as the case may be.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Commerce ministry wants these instructions to be communicated to all officers dealing with SEZ for compliance.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/sezinstruction.htm">INSTRUCTION NO. 6/2006, Dated: August 3, 2006 of the Ministry of Commerce & Industry, Department of Commerce (SEZ Section)</a></u></font></p> <p align="center" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Disobedient IRS – angry FM</font></strong></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Transferred officers are not always keen to leave their places. It takes a lot of pressure to really get an officer to move (unless the transfer is to his liking in which case he will leave everything and catch the first flight out). Transfer orders issued by the Board after approval by the Hon’ble FM receive scant respect in the field. The first reaction is to shoot off a representation for retention for a few months if not a few years. All the orders contain instructions like,</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">All the officers should be relieved immediately and should join at their new place of posting on or before xxxxxx under intimation to the Board. No representation whatsoever will be entertained before the officers join at their new places of posting. The Chief Commissioner will be personally responsible to send compliance reports regarding relieving and joining of the above officers to the Board by xxxxx.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But what happens if the Chief Commissioner himself violates this? Sometime back we had reported about a newly promoted Chief Commissioner refusing to leave his old Commissioner’s office. A Commissioner told us that the poor Chief Commissioner was innocent; it was the Board which asked him to continue in his old place. Obviously there is no respect for transfer orders, but the FM is not amused. So he has ordered that:-</font></p> <p align="justify" > <font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>(i) </b> The AGT was effected in May this year. A number of representations received from officers against their transfers have been considered by the respective Placement Committees and disposed off by Government. The receipt of representation and their consideration cannot be a never ending process. Accordingly, no further representation on transfers effected under AGT 2006 may be entertained or considered hereafter.</font></p> <p align="justify" > <font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>(ii) </b> All officers who have been transferred under AGT-2006 will be relieved by their respective controlling officers not later than 31st August, 2006. The controlling officer will send compliance reports accordingly to the Board positively by 1st September, 2006.<br> </font></p> <p align="justify" > <font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>(iii) </b> If the officers are not relieved by the stipulated date, disciplinary action will be taken both against the controlling officers and the officers concerned.( please note this is officers concerned and not concerned officers) </font></p> <p align="justify" > <font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>(iv) </b> No leave should be sanctioned to such officers who are under order of transfer. Leave in such cases can only be sanctioned by the Board on very specific grounds. In case leave sought on medical grounds, reference to a panel of Government doctors should be made.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Obviously the Board knows that even these instructions may not be seriously considered by the officers. So they have informed that the FM will be informed by 05.09.2006 about the compliance. </font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If senior officers show so much contempt for transfer orders issued by the highest authority, how can they expect obedience from their subordinates?</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?filename=_d454e3a5e0b009_news.htm&subCatDisp_Id=70">Board’s F.No.A.22011/8/2006-Ad.II(Pt.) dated 21st August, 2006 </a></font></p> <p align="justify" ><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until tomorrow with more DDT </font></p> <p align="justify" ><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice day. </font></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@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></font></p> </body> </html>