TIOL-DDT 553 · 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 > <p align="justify"><b><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT 553</font></b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><br> 15.02.2007<br> Thursday</b></font></p> <p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Customs duty – <i>ad-hoc</i> exemption - instructions</font></b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per Section 25(2) of the Customs Act, if the Central Government is satisfied that it is necessary in the public interest so to do, it may, by special order in each case, exempt from payment of duty, under circumstances of an exceptional nature to be stated in such order, any goods on which duty is leviable.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Thus, each case has to be examined on merit, keeping in mind, the aspect of “public interest”, “the exceptional nature of the circumstances” warranting duty exemption, and the general policy adopted in the past.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board had in 2003 issued guidelines for granting exemption under the section.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per the guidelines,</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ payment of Customs duty cannot be viewed as a dispensable expenditure, and there should be no need to seek ad-hoc exemption from payment of Customs duty on goods meant for the normal functional requirements of the Central Police Organizations, State Police Organizations, and Para-military forces.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Similarly Ad-hoc exemption from Customs duty will not be considered for import of goods made by Central/State Governments, autonomous bodies, Municipalities, and public sector undertakings as part of the schemes or projects implemented by them.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But these instructions are not kept in mind while requesting for <i>adhoc</i> exemption. Board gets a number of requests from from Ministries, State Governments, Autonomous Bodies, Municipalities and Public Sector Undertakings for customs duty exemption on various items meant for normal functional requirement or for various projects implemented by them, even without specifying as to why they could not provide budgetary allocation for payment of Customs duty.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So now Board directs that such requests for exemption in such cases should not be forwarded and to make necessary budgetary provisions for payment of Customs duty along with the cost of the imported goods. Board directs that such requests will not be considered.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2007/cuscir07_10.htm">CIRCULAR NO. 10/2007-Cus,Dated: February 13, 2007</a></u></font></p> <p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Deposit of Rs. 3000 from foreign going vessels – dispensed with</font></b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">By a 1970 circular, a deposit of Rs. 3000 and Rs. 1000 is taken from foreign vessel and coastal vessel, respectively, for covering liabilities of individual vessels.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per Section 42 of the Customs Act, 1962, the vessel is permitted to depart from a customs station by the proper officer after considering that the person in charge of the conveyance has complied with,- </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. production of specified documents and replied the question, if any, raised</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Delivery of export manifest.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Payment of all duties leviable on any stores consumed in the conveyance.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Payment of all charges and penalties due in respect of the conveyance.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. No penalty is leviable on the person-in-charge under section 116 for the deficiency of goods.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. Exports goods contravening any of provision of the Customs Act have been unloaded.<br> <br> The issue was discussed in the Chief Commissioner’s Conference at Mumbai and it was felt that these deposits are of no relevance today as the department has ample power to recover dues, if any, under Section 142 of Customs Act. The deposit is meager and the effort or manpower deployment and logistic involved in first collecting the deposit and refunding it subsequently far outweighs the benefits. The procedure for taking of a deposit initially and refunding it, each time the vessel enters and departs the port, involves avoidable administrative inconvenience and delay in re-payment of deposit.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So the Board, as a trade facilitation measure, has desired that such security amount may not be taken. However, the field formations should ensure that provisions of section 42 are complied with before permitting the conveyance to depart from the customs station by the proper officer.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Is the Board’s desire a direction or can the authorities flout it with impunity as they do with directions?</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2007/cusinstruct0207.htm">CBEC’s F.No.450/ 10 /2007-Cus.IV dated February 13, 2007</a></u></font></p> <p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Former IRS officer to head NDTV</font></b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">NDTV has appointed its Executive Director, KVL Narayan Rao, as its new Group Chief Executive Officer. Mr Rao has been tasked with turning NDTV into a global Indian media brand which is "recognised all over the world for its ethics, high standards and achievements".</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Mr Rao has been with NDTV since 1995 and has played a key role in the transition and growth of NDTV from a production house to a broadcaster. He currently represents NDTV on several international bodies.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">He started his career as a journalist with the Indian Express. He moved on to the Indian Revenue Service and served in different roles, including deputy commissioner of income tax and deputy secretary in the ministry of defence. </font></p> <p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Central Excise and a bounced cheque</font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A cheque given to the Central Excise department is dishonoured. The department files a criminal complaint. The cheque was given in honour of some adjudication order demanding duty. The demand was quashed by the Supreme Court. The cheque was given on an understanding that it would not be presented without the consent of the assessee. But the cheque is presented and bounced. The assessee challenges the summons from the High Court and the High Court holds that when the demand itself is struck down by the Supreme Court, there is no logic in pursuing the bounced cheque. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Since when has the department started accepting cheques for payment of excise duty and why should the department file a complaint when the demand itself was struck down?</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">See more details of this interesting case in our<a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=4983"> <u>Breaking News.</u></a></font></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Tomorrow is a holiday</font></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Monday 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></span></font></p> </body> </html>