Gutkha Evasion - CBEC's new initiative
Taking note of the rampant evasion prevalent in this sector, the Chairman, Central Board of Excise and Customs had recently issued instructions to the field formations for verification of the packing machines present in the factory, the number of such machines working, and for sealing of non-working machines.
As a part of the strategy of the indirect tax administration to encourage voluntary tax compliance, at the same time providing a sharp and uncompromising response to non-compliance, the CBEC has introduced a new scheme under which:-
++ an option has been provided for payment of Rs. twelve lakh as duty per month per packing machine per line for Gutkha pouches of RSP upto Rs. 1.50.
++ Similarly, the duty per machine per line per month for Pan Masala pouches carrying RSP up to Rs. 1.50 has been fixed at Rs. ten lakh .
++ Different duty slabs have been provided for pouches priced upto Rs. 6.
++ In case of multiple track/line packing machine , the rate of duty would be multiplied accordingly.
A manufacturer opting for this scheme has to file an application giving details of the packing machine installed in the factory to the jurisdictional Assistant/Deputy Commissioner of Central Excise. Once this option is exercised by a manufacturer, it will remain effective for the entire financial year. Any addition or removal of packing machines can be made only under the physical supervision of the officer authorised for this purpose. In case a manufacturer opts for this scheme, there will normally be no inspection or search of his premises in a routine manner. Detailed instructions have also been issued to the field formations highlighting the salient features of this scheme.
As usual, after issuing the notification and instructions, the CBEC has gone into its shell and for love, money or bandwidth, you can't get them anywhere. We will try to bring them to you later in the day.