Exemption of Cess @ 0.05% on Textiles and Textiles Machinery – EDI – please correct
Cess has been exempted wholly with effect from 1.6.2007, but CBEC has information that textile cess is being collected by some of the Customs field formations despite the exemption from the whole of the cess being granted by the Government. Why does this happen? The CBEC's EDI system is not updated as fast as notifications are issued. In fact the EDI boys don't get the notifications and the system is God! Even if importers tell the Customs about exemption notifications, officers are helpless until changes are made in the EDI systems.
Board now clarifies that no such textile cess is leviable w.e.f. 1.6.2007. Therefore, pending provisional assessments, if any, may be finalised accordingly.
It has also come to the notice of the Board that Customs EDI directories reflecting the effective rate of duty have not been updated in certain Commissionerates. Board directs that the jurisdictional Commissioner of Customs shall ensure updating of the ‘directories' in the Customs EDI System periodically on the basis of the various notifications issued to reflect the correct position of the applicable duties on import and export.
The Systems Managers in charge of Customs EDI systems in all Customs formations may ensure updating of the EDI directories on time, on the basis of the instructions / guidelines issued by the Directorate of Systems, to ensure collection of duties properly. In case of difficulties, if any, in updation of the Directories, they should consult the Directorate of Systems, New Delhi for necessary guidance.
All wonderful! But why can't the system be updated immediately after the issue of the notification or rather simultaneously?
As the Customs EDI refused to accept an exemption from NCCD, the importer was made to pay the NCCD. He engaged in protracted correspondence with the department and finally asked for refund. Refund was rejected on the ground of unjust enrichment. Appeal was rejected as he had not challenged the assessment! All because the Department could not update its EDI!
You make a mistake and you are punished; the Department makes a mistake and you are punished! And we all think we are civilized!
CBEC's F.No.528/68/2007-Cus(TU) Dated 7th September, 2007.