Chartered Accountant
Bookmark and Share
click here to subscribe our newsletter
 
 
Corporate News *   RTI applicant in Madhya Pradesh asked to pay GST for information *   India’s GST collection drops to Rs93,960cr in August *   Karnataka Taxmen arrest two Bengaluru businessmen in GST related fraud *  Govt may soon impose IGST on ex-factory sales; decision in September. *  Niti Aayog Suggests Slashing Import Duty, GST On Gold *  Kerala Floods: Relief Goods Exempted From Customs Duty, IGST *  No GST On Petrol, Diesel In Near Future As Centre, States Not In Favour. *  Kerala plans to raise Rs 7.5 bn through hiked liquor duty & 10% cess on GST. *  Orissa HC directs authorities not to take action against importers on GST. *  Firms can't be selective in passing on rate cut benefits under GST regime *  Technical glitches continue to haunt the Goods and Services Tax Network *  GST Annual Return: Everything you need to know about the format, eligibility & rules around GSTR 9  *  Post GST, J&K’s own tax collection drops by Rs 1,300 crore since July 2017 *  GST Council may replace 12% and 18% slabs with 14-15% one: Sushil Modi *  Domino’s lands in trouble for not passing on GST cuts *   Higher oil prices, GST may boost states revenue by Rs 37,400 crore in FY19  *   These taxpayers no more at mercy of GST intermediaries *  Budget 2018: No fiscal derailment, but a lot rides on GST; expect caution from RBI *  GST: E-way bill implementation deferred due to glitches *  Homebuyers must avoid traps on the name of NO GST Impact *   Govt will formulate a comprehensive gold policy to develop gold as an asset class *   Government to evolve to asign a unique id to every individual enterprise. *   1.48 lakh crore for rail budget. *   7148 Crore to be sanctioned to textile sector. *   3700 corore for SME industry *  16000 crore for free electricity connection *   Government ignored warnings over GST rollout: sources *  GSTR 3B questionaire introduced- To be filled before filing return *  Advisory mail  to all the taxpayers received from GSTN *   Advisory group on GST submits report, suggests changes
Subject News *  State appellate body upholds GST on liquidated damages.  *  Consumer durables firms, GST body continue to spar over profiteering *   225 million e-way bills generated across India since GST rollout *   September last month to fix GST filing errors *   Due date of TRAN-1 and TRAN-2 is extended *   Extension of Due date for GSTR-3B only for newly migrated taxpayers *   Extension of Due date for GSTR-1 *   Taxpayer with turnover over Rs 2 cr need GST audit certificate, will be arduous job for auditors *   Whether the appellants are eligible for refund of the duty claimed to have been paid in excess on the basis of DMT of the goods? Whether the said claim of refund is sustainable without challenging the assessment of the shipping bills. (Source:PJ/CASE LAW/2018-2019/3479) *   GST Flash Updates on various circulars and notifications dated 04/09/2018 *   GST Update on Circular No. 61/2018-GST dated 04.09.2018 *   GST Update on disharmony in CGST and SGST *    Update on restriction of refund of IGST paid on exports under Rule 96(10) of the CGST Rules *   1,800 businesses migrate to GST regime *   ‘Missing’ service tax credit in GST update worries companies  *   Government notifies new annual return form for GST *  Whether Automatic Taps, Urinals and WC Flushing Systems would be classified under heading 9032 or Heading 8481 of Central Excise tariff. *  : Whether processing of secondary raw materials(steel scrap of different and variable composition) into blended steel scrap is liable for payment of central excise duty under the provision of the central excise Act,1944?Can  such “blended metal scrap” can be classified under tariff item 72044900 of the central excise tariff Act, 1985? *  Whether the transportation of goods by means of hired vehicles such that no consignment note is issued, would fall under the category of Goods Transport Agency Service? *  Whether the applicant is eligible to avail the benefit of exemption from payment of SAD provided under Notification No. 21/2012-Cus. *  Whether the polyester sewing thread manufactured by the appellant is excisable or not. *  INTERNATIONAL INSTITUTE OF DIAMOND GRADING & RESEARCH INDIA P. LTD. *  Whether grading and inscription of diamonds by the appellant (IIDGR India Private Limited) would amount to manufacture under Central Excise legislation. *  What is the classification when frozen meat is sold in packaged form and rate of tax to be applicable? *  Is the unutilized cenvat credit available before surrender of registration transferable to the new unit? *  Whether Kindle device is covered under Tariff Item 8543 70 99 of Customs Tariff Act, 1975 or not? *  GST Council considering Kerala government's proposal of 'calamity tax' *  Orissa HC directs authorities not to take action against importers on GST *  Whether the assessee on filing of second appeal before Tribunal is required to make an additional pre-deposit of 10% of the duty and penalty in dispute? *  Whether Automatic Taps, Urinals and WC Flushing Systems would be classified under heading 9032 or Heading 8481 of Central Excise tariff?  

Comments

Publish Date: 02 Jul, 2016
Print   |    |  Comment

IMPORT AT CONCESSIONAL RATE OF DUTY – AIM OF AMENDMENT NOT ACHIEVED

­­IMPORT AT CONCESSIONAL RATE OF DUTY – AIM OF AMENDMENT NOT ACHIEVED

 

An article by:-
CA. Pradeep Jain
CA. Preeti Parihar
CA. Vaibhav Bothra

 
Introduction 
New Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2016 have come into force w.e.f. 1.4.2016. The old rules were superseded with these rules with an aim to simplify the procedural formalities. As of now, three months have passed since the implementation of new rules, but the target of “procedural simplification” has not been achieved. This article is an insight about the aims of new rules and current status of the said aims.
 
Comparision of new and old rules
A comparision of the changes made by new rules and their rationale is discussed as follows:-
1.     In the old rules, there was requirement of taking the new registration from AC/DC of Central Excise if the benefit of these rules is to be availed. However, the new rules omit the requirement of separate registration if the manufacturer is already registered with AC/DC of Central Excise which is a big relaxation given to the importer manufacturers.
2.     In the old rules the intimation of import was countersigned by the AC/DC of Central Excise which was to be submitted to the AC/DC of Customs. However, in the new rules, the import intimation is to be filed to AC/DC of Central excise in duplicate who will forward one copy to the AC/DC of customs at the port of importation.
3.     The new rules reduces the time limit for re-export of the unutilised or defective imported goods from 6 months to 3 months
4.     The new rules specify that the defective or unutilized imported goods may be cleared on payment of differential import duty along with interest at specified rates.
5.     The new rules provide that the AC/DC of Central Excise may require the importer to furnish security also which was not provided in the old rules.
Out of the above stated amendments, the second one, i.e. the condition pertaining to import intimation is the crucial one and amendment done in its procedure does not give relaxation to the importers.
 
Intimation of import – procedural simplification
Every time the import is done under the provisions of these rules, an intimation of import is to be filed to AC/DC of Central Excise. This intimation is countersigned by him and this countersigned copy is to be forwarded by the importer to AC/DC of Customs at the time of import. It is on the basis of this countersigned copy that the benefit of these rules read with respective exemption notification is allowed. As per the new rules, the importer is not required to forward the countersigned copy to customs department. The importer’s work ends with submitting the intimation of import in duplicate to the Excise Department. It is the Excise department which is supposed to send the copy signed by its AC/DC to the AC/DC of customs department. In other words, the movement of intimation has been made inter-departmental transfer by virtue of newly substituted rules.
 
Aim of amendment fails here
Government has brought the new rules to simplify the procedure of filing the import intimation. However, the practical situation is still the same. The importers are still forced to take away the countersigned copy of intimation and file the same to custom department. The excise department is not showing any interest in sending the intimation to customs department. Initially when the new rules were implemented, the importers were relaxed that they need not bother about the countersigned copy of import intimation. However, at the time of import, they were harassed on knowing that the procedure laid down under new rules is not being followed. Ultimately, the importers themselves had to arrange for the countersigned copy of the import intimation from the excise department and it was then submitted to the customs department. Thus, due to non-co-operation of both the departments, the importers are forced to follow the old practice and procedure laid down in the old rules despite fact that the new rules does not speak about the same. Due to this, it seems that the substitution of old rules with new ones has become a futile exercise due to non co-operation of relevant departmental officers.
 
While parting
It is quite clear that the intention of the government has been to ease the procedure and paper work to be followed by the importer. Although the new rules have come in force but in practical life, it seems that ease of doing business is still a long fetched dream. This is clearly visible by the existing situation in the governmental departments. The government spends a large amount on research and makes suitable amendments in order to simplify the procedures. However, the entire exercise of government and expectations of trade are bounced back due to negligence and non-co operation of field formations. So far as the new rules in issue are concerned, the government should come up with guidelines or clarification strictly directing the relevant officers of excise and customs department to follow the provisions and procedure laid down by the new rules.
 

Department News


Query

 
PRADEEP JAIN, F.C.A.

Head Office : -

Address :
"SUGYAN", H - 29, SHASTRI NAGAR, JODHPUR (RAJ.) - 342003

Phone No. :
0291 - 2439496, 0291 - 3258496

Mobile No. :
09314722236

Fax No. :0291 - 2439496


Branch Office : -

Address:
1008, 10th FLOOR, SUKH SAGAR COMPLEX,
NEAR FORTUNE LANDMARK HOTEL, USMANPURA,
ASHRAM ROAD, AHMEDABAD-380013

Phone No. :
079-32999496, 27560043

Mobile No. :
093777659496, 09377649496

E-mail :pradeep@capradeepjain.com