The legislative changes would come into effect only upon the enactment of the Finance (No. 2) Bill, 2019 .
The legislative changes would come into effect only
upon the enactment of the Finance (No. 2) Bill, 2019.
Current provisions
|
Proposed provisions
|
Effect
|
Section – 41 (Delivery of
departure manifest or export manifest or export report)
|
||
The
person-in-charge of a conveyance carrying export goods or imported goods
shall, before departure of the conveyance from a customs station, deliver to
the proper officer in the case of a vessel or aircraft, an departure manifest
or export manifest by presenting electronically, and in the case of a
vehicle, an export report, in such form and manner as may be prescribed and in
case, the person-in-charge fails to deliver the departure manifest or export
manifest or the export report or any part thereof within such time, and the
proper officer is satisfied that there is no sufficient cause for such delay,
such person-in-charge shall be liable to pay penalty not exceeding fifty
thousand rupees
|
The person-in-charge of a conveyance carrying export goods or
imported goods or any other person as may be specified by the Central Government,
by notification, shall, before departure of the conveyance from a customs
station, deliver to the proper officer in the case of a vessel or aircraft, a
departure manifest or an export manifest by presenting electronically, and in
the case of a vehicle, an export report, in such form and manner as may be
prescribed and in case, such person-in-charge or other person fails to
deliver the departure manifest or export manifest or the export report or any
part thereof within such time, and the proper officer is satisfied that there
is no sufficient cause for such delay, such person-in-charge or other person
shall be liable to pay penalty not exceeding fifty thousand rupees”.
|
Section
41 is being amended so as to provide a facility, that the departure manifest
can also be furnished to a person notified by the Central Government, in
addition to the person-in charge of the conveyance.
|
Chapter XIIB - “Verification of Identity
and Compliance”
|
||
This
chapter has been newly inserted:
99B.
(1) The proper officer, authorised in this behalf by the Principal
Commissioner of Customs or the Commissioner of Customs, as the case may be,
may, for the purposes of ascertaining compliance of the provisions of this
Act or any other law for the time being in force, require a person, whose
verification he considers necessary for protecting the interest of revenue or
for preventing smuggling, to do all or any of the following, namely:––
(a)
undergo authentication, or furnish proof of possession of Aadhaar number, in
such manner and within such time as may be prescribed;
(b)
submit such other document or information, in such manner and within such
time as may be prescribed:
Provided
that where such person has not been assigned the Aadhaar number, or where so
assigned,
but authentication of such person has failed due to technical reasons or for
reasons beyond his control, then, he shall be provided an opportunity to
furnish such other alternative and viable means of identification in such
form and manner and within such time as may be prescribed.
(2)
The provisions of sub-section (1) shall not apply to such person or class of
persons as may be prescribed.
(3)
Notwithstanding anything contained in any other provisions of this Act, where
the Principal Commissioner of Customs or the Commissioner of Customs comes to
the conclusion, based on reasons to be recorded in writing, that the person
referred to in sub-section (1) has––
i.
failed
to comply with the requirements of the said sub-section or submitted
incorrect documents or information under the said sub-section, he may, by
order, suspend––
a.
clearance
of imported goods or export goods;
b.
sanction
of refund;
c.
sanction
of drawback;
d.
exemption
from duty;
e.
licence
or registration granted under this Act; or
f.
any
benefit, monetary or otherwise, arising out of import or export,
relating to such person, subject
to such conditions as may be prescribed;
ii.
failed
authentication as required under the said sub-section, he may, by order,
direct that such person shall not have the benefit of any of the items
specified in sub-clauses (a) to (f) of clause (i).
(4)
The order of suspension under sub-section (3) shall remain in force until the
person concerned complies with the requirements of sub-section (1) or
furnishes correct document or information thereunder.
Explanation–
For the purposes of this section, the
expression “Aadhaar number” shall have the same meaning as assigned to it in
clause (a) of section 2 of the Aadhaar (Targeted Delivery of Financial and
Other Subsidies, Benefits and Services) Act, 2016.’.
|
||
Section 103 - Power to screen or
X-ray bodies of suspected persons for detecting secreted goods
|
||
(1)
Where the proper officer has reason to believe that any person referred to in
sub-section (2) of section 100 has any goods liable to confiscation secreted
inside his body, he may detain such person and produce him without
unnecessary delay before the nearest magistrate.
|
(1)
Where the proper officer has reason to believe that any person referred to in
sub-section (2) of section 100 has any goods liable to confiscation secreted
inside his body, he may detain such person and
(a) with the prior approval of the Deputy Commissioner of Customs
or Assistant Commissioner of Customs, as soon as practicable, screen or scan
such person using such equipment as may be available at the customs station,
but without prejudice to any of the rights available to such person under any
other law for the time being in force, including his consent for such
screening or scanning, and forward a report of such screening or scanning to
the nearest magistrate if such goods appear to be secreted inside his body;
or
(b) produce him without unnecessary delay before the nearest
magistrate.”;
|
Section
103(1) is being amended so as to substitute sub-section (1) in order to
enable the proper officer to scan or screen, with the prior approval of Deputy
Commissioner of Customs or Assistant Commissioner of Customs, any person
referred to in sub-section (2) of section 100 who has any goods liable to
confiscation secreted inside his body. The proper officer can directly
furnish the report of the said screening or scanning to the nearest
magistrate if such goods are found secreted inside the body of the said
person.
|
(6) Where
on receipt of a report from a radiologist under sub-section (5) or otherwise,
the magistrate is satisfied that any person has any goods liable to
confiscation secreted inside his body, he may direct that suitable action for
bringing out such goods be taken on the advice and under the supervision of a
registered medical practitioner and such person shall be bound to comply with
such direction.
|
Where
on receipt of a report from the proper officer under
clause (a) of sub-section (1) or from a radiologist under sub-section
(5) or otherwise, the magistrate is satisfied that any person has any goods
liable to confiscation secreted inside his body, he may direct that suitable
action for bringing out such goods be taken on the advice and under the
supervision of a registered medical practitioner and such person shall be
bound to comply with such direction.
|
Section
103(6) is being amended so as to enable the magistrate to take action upon
the report of scanning or screening by the proper officer under sub-section
(6).
|
Section 104 – Power to arrest
|
||
(1)
If an officer of Customs empowered in this behalf by general or special order
of the Principal Commissioner of Customs or Commissioner of Customs has
reason to believe that any person in India or within the Indian customs
waters has committed an offence punishable under section 132 or section 133
or section 135 or section 135A or section 136, he may arrest such person and
shall, as soon as may be, inform him of the grounds for such arrest
|
(1)
If an officer of Customs empowered in this behalf by general or special order
of the Principal Commissioner of Customs or Commissioner of Customs has reason
to believe that any person
|
Section
104(1) is being amended so as to empower an officer of customs to arrest a
person who has committed an offence outside India or Indian Customs waters.
|
(4) Notwithstanding
anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), any
offence relating to-
(a)
Prohibited goods; or
(b) evasion or attempted evasion of duty
exceeding fifty lakh rupees, shall be cognizable.
|
(4)
Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2
of 1974), any offence relating to-
(a)
Prohibited goods; or
(b) evasion or attempted evasion of duty
exceeding fifty lakh “rupees, or”
(c) fraudulently availing of or attempting to avail drawback or any
exemption from duty provided under this Act, where the amount of drawback or
exemption from duty exceeds fifty lakh rupees; or
(d) fraudulently obtaining an instrument for the purposes of this
Act or the Foreign Trade (Development and Regulation) Act, 1992, and such
instrument is utilised under this Act, where duty relatable to such
utilisation of instrument exceeds fifty lakh rupees,”
shall be cognizable. |
Sec
104(4) has been amended so as to insert two new clauses (c) and (d) in
sub-section (4) so as to specify two particular offences which shall be
cognizable.
|
(6)
Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2
of 1974), an offence punishable under section 135 relating to-
(a)
evasion or attempted evasion of duty exceeding fifty lakh rupees; or
(b)
prohibited goods notified under section 11 which are also notified under
sub-clause (C) of clause (i) of sub-section (1) of section 135; or
(c)
import or export of any goods which have not been declared in accordance with
the provisions of this Act and the market price of which exceeds one crore
rupees; or
(d)
fraudulently availing of or attempt to avail of drawback or any exemption
from duty provided under this Act, if the amount of drawback or exemption
from duty exceeds fifty lakh rupees, shall be non-bailable.
|
(6)
Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2
of 1974), an offence punishable under section 135 relating to-
(a)
evasion or attempted evasion of duty exceeding fifty lakh rupees; or
(b)
prohibited goods notified under section 11 which are also notified under
sub-clause (C) of clause (i) of sub-section (1) of section 135; or
(c)
import or export of any goods which have not been declared in accordance with
the provisions of this Act and the market price of which exceeds one crore
rupees; or
(d)
fraudulently availing of or attempt to avail of drawback or any exemption
from duty provided under this Act, if the amount of drawback or exemption
from duty exceeds fifty lakh “rupees or”, shall
be non-bailable.
(e) fraudulently obtaining an instrument for the purposes of this
Act or the Foreign Trade (Development and Regulation) Act, 1992, and such
instrument is utilised under this Act, where duty relatable to such
utilisation of instrument exceeds fifty lakh rupees,”;
|
Section
104(6) is being amended so as to insert a new clause (e) in sub-section (6)
so as to specify a particular offence which shall be non-bailable.
|
(7)
Save as otherwise provided in sub-section (6), all other offences under this
Act shall be bailable.
|
(7)
Save as otherwise provided in sub-section (6), all other offences under this
Act shall be bailable.
‘Explanation - For the purposes of this section, the expression
“instrument” shall have the same meaning as assigned to it in Explanation 1
to section 28AAA.’
|
Section
104(7) is being amended so as to insert an Explanation so as to define the term
instrument.
|
Section 110 – Seizure of goods,
documents and things
|
||
(1)
If the proper officer has reason to believe that any goods are liable to
confiscation under this Act, he may seize such goods:
Provided
that where it is not practicable to seize any such goods, the proper officer
may serve on the owner of the goods an order that he shall not remove, part
with, or otherwise deal with the goods except with the previous permission of
such officer.
|
(1) If the proper officer has reason to believe that any goods
are liable to confiscation under this Act, he may seize such goods:
“Provided that where it is not practicable to remove, transport,
store or take physical possession of the seized goods for any reason, the
proper officer may give custody of the seized goods to the owner of the goods
or the beneficial owner or any person holding himself out to be the importer,
or any other person from whose custody such goods have been seized, on
execution of an undertaking by such person that he shall not remove, part
with, or otherwise deal with the goods except with the previous permission of
such officer:
Provided further that where it is not practicable to seize any
such goods, the proper officer may serve an order on the owner of the goods
or the beneficial owner or any person holding himself out to be importer, or
any other person from whose custody such goods have been found, directing that
such person shall not remove, part with, or otherwise deal with such goods
except with the previous permission of such officer.”;
|
Section
110(1) is being amended so as to substitute the existing proviso in
sub-section (1) with two provisos so as to specify the conditions under which
the custody of seized goods could be given to certain person. The amendment
also seeks to specify the conditions, under which the custody of such goods,
where it is not practicable to seize such goods, could be given to certain persons.
|
………………
|
(5) Where the proper officer, during any proceedings under the
Act, is of the opinion that for the purposes of protecting the interest of
revenue or preventing smuggling, it is necessary so to do, he may, with the
approval of the Principal Commissioner of Customs or Commissioner of Customs,
by order in writing, provisionally attach any bank account for a period not
exceeding six months:
Provided that the Principal Commissioner of Customs or
Commissioner of Customs may, for reasons to be recorded in writing, extend
such period to a further period not exceeding six months and inform such
extension of time to the person whose bank account is
provisionally attached, before the expiry of the period so
specified.”.
|
Section
110 is being amended so as to insert a new sub-section (5) so as to empower
the proper officer to provisionally attach any bank account for safeguarding
the government revenue and prevention of smuggling, for a period not
exceeding six months. It is also being provided that a Principal Commissioner
of Customs or Commissioner of Customs may further extend the period of
attachment up to six months.
|
Section 110A - Provisional release
of goods, documents and things seized “or bank
account provisionally attached” pending adjudication
|
||
Provisional release of goods, documents and things
seized pending adjudication
Any
goods, documents or things seized under section 110, may, pending the order
of the adjudicating authority, be released to the owner on taking a bond from
him in the proper form with such security and conditions as the adjudicating
authority may require.
|
Provisional release of goods, documents and things seized
or bank account provisionally attached pending
adjudication
Any
goods, documents or things seized or bank account provisionally
attached under section 110, may, pending the order of the adjudicating
authority, be released to the owner or the bank
account holder on taking a bond from him in the proper form with such
security and conditions as the adjudicating authority may require.
|
Section
110A is being amended so as to empower an adjudicating authority to release
bank account provisionally attached under section 110 to the account holder
on fulfilment of certain conditions.
|
Insertion of new Section 114AB -
Penalty for obtaining instrument by fraud, etc.
|
||
…………..
|
114AB. Where any person has obtained any instrument by fraud,
collusion, wilful misstatement or suppression of facts and such instrument
has been utilised by such person or any other person for discharging duty, the
person to whom the instrument was issued shall be liable for penalty not
exceeding the face value of such instrument.
Explanation.–– For the purposes of this section, the expression
“instrument” shall have the same meaning as assigned to it in the Explanation
1 to section 28AAA.’.
|
A
new section 114AB is being inserted so as to provide that any person who has
obtained any instrument by fraud, collusion, wilful misstatement or
suppression of facts and such instrument has been utilized by such person or
any other person for discharging duty, such person to whom the instrument was
issued shall be liable for penalty not exceeding the face value of such
instrument. An Explanation to define the term instrument is also being
inserted.
|
Section 117 - Penalties for
contravention, etc., not expressly mentioned
|
||
Any
person who contravenes any provision of this Act or abets any such contravention
or who fails to comply with any provision of this Act with which it was his
duty to comply, where no express penalty is elsewhere provided for such
contravention or failure, shall be liable to a penalty not exceeding one lakh
rupees
|
Any
person who contravenes any provision of this Act or abets any such
contravention or who fails to comply with any provision of this Act with which
it was his duty to comply, where no express penalty is elsewhere provided for
such contravention or failure, shall be liable to a penalty not exceeding
|
Section
117 is being amended so as to increase the maximum limit of penalty from one
lakh rupees to four lakh rupees
|
Section 125 - Option to pay fine
in lieu of confiscation
|
||
First proviso to section 125(1)
Provided
that where the proceedings are deemed to be concluded under the proviso to
sub-section (2) of section 28 or under clause (i) of sub-section (6) of that
section in respect of the goods which are not prohibited or restricted, the
provisions of this section shall not apply
|
Provided
that where the proceedings are deemed to be concluded under the proviso to
sub-section (2) of section 28 or under clause (i) of sub-section (6) of that
section in respect of the goods which are not prohibited or restricted,
|
First
proviso to section 125 is being amended so as to provide that in respect of
cases of covered under deemed closure proceedings under section 28, no fine
in lieu of confiscation shall be imposed on the infringing goods.
|
Section 135 - Evasion of duty or
prohibitions
|
||
(1)
Without prejudice to any action that may be taken under this Act, if any
person-
(a)
is in relation to any goods in any way knowingly concerned in misdeclaration
of value or in any fraudulent evasion or attempt at evasion of any duty
chargeable thereon or of any prohibition for the time being imposed under
this Act or any other law for the time being in force with respect to such
goods; or
(b)
acquires possession of or is in any way concerned in carrying, removing,
depositing, harbouring, keeping, concealing, selling or purchasing or in any
other manner dealing with any goods which he knows or has reason to believe
are liable to confiscation under section 111 or section 113, as the case may
be; or
(c)
attempts to export any goods which he knows or has reason to believe are
liable to confiscation under section 113; or
(d)
fraudulently avails of or attempts to avail of drawback or any exemption from
duty provided under this Act in connection with export of goods,
he
shall be punishable, -
(i)
in the case of an offence relating to,-
(A)
any goods the market price of which exceeds one crore of rupees; or
(B)
the evasion or attempted evasion of duty exceeding 1[fifty lakh] of rupees;
or
(C)
such categories of prohibited goods as the Central Government may, by
notification in the Official Gazette, specify; or
(D)
fraudulently availing of or attempting to avail of drawback or any exemption from
duty referred to in clause (d), if the amount of drawback or exemption from
duty exceeds fifty lakh of rupees,
with
imprisonment for a term which may extend to seven years and with fine:
|
(1)
Without prejudice to any action that may be taken under this Act, if any
person-
(a)
is in relation to any goods in any way knowingly concerned in misdeclaration
of value or in any fraudulent evasion or attempt at evasion of any duty
chargeable thereon or of any prohibition for the time being imposed under
this Act or any other law for the time being in force with respect to such
goods; or
(b)
acquires possession of or is in any way concerned in carrying, removing,
depositing, harbouring, keeping, concealing, selling or purchasing or in any
other manner dealing with any goods which he knows or has reason to believe
are liable to confiscation under section 111 or section 113, as the case may
be; or
(c)
attempts to export any goods which he knows or has reason to believe are
liable to confiscation under section 113; or
(d)
fraudulently avails of or attempts to avail of drawback or any exemption from
duty provided under this Act in connection with export of goods, or
“(e) obtains an instrument from any authority by fraud, collusion,
wilful misstatement or suppression of facts and such instrument has been utilised
by such person or any other person,”
he
shall be punishable, -
(i)
in the case of an offence relating to,-
(A)
any goods the market price of which exceeds one crore of rupees; or
(B)
the evasion or attempted evasion of duty exceeding 1[fifty lakh] of rupees;
or
(C)
such categories of prohibited goods as the Central Government may, by notification
in the Official Gazette, specify; or
(D)
fraudulently availing of or attempting to avail of drawback or any exemption
from duty referred to in clause (d), if the amount of drawback or exemption
from duty exceeds fifty lakh of rupees, or
“(E) obtaining an instrument from any authority by fraud,
collusion, wilful misstatement or suppression of facts and such instrument
has been utilised by any person, where the duty relatable to utilisation of
the instrument exceeds fifty lakh rupees,”.
with
imprisonment for a term which may extend to seven years and with fine:
|
Sub-section
(1) of section 135 is being amended so as to-
(a)
to insert a new clause (e) therein to make obtaining of an instrument from
any authority by fraud, collusion, wilful misstatement or suppression of
facts, where such instrument has been utilized by any person a punishable offence.
(b)
insert a new sub-item (E) under item (i) to make obtaining an instrument from
any authority by fraud, collusion, wilful misstatement or suppression of facts,
where such instrument has been utilized by any person a punishable offence if
the duty relatable to utilization of the instrument exceeds fifty lakhs of
rupees.
|
…………….
|
Explanation– For the purposes of this section, the expression
“instrument” shall have the same
meaning as assigned to it in the Explanation 1 to section 28AAA.’
|
Sub-section
(3) of section 135 is being amended so as to insert an Explanation to define
the term instrument.
|
Section 149 - Amendment of
documents
|
||
Save
as otherwise provided in sections 30 and 41, the proper officer may, in his
discretion, authorise any document, after it has been presented in the custom
house to be amended:
Provided
that no amendment of a bill of entry or a shipping bill or bill of export
shall be so authorised to be amended after the imported goods have been
cleared for home consumption or deposited in a warehouse, or the export goods
have been exported, except on the basis of documentary evidence which was in
existence at the time the goods were cleared, deposited or exported, as the
case may be.
|
Save
as otherwise provided in sections 30 and 41, the proper officer may, in his
discretion, authorise any document, after it has been presented in the custom
house to be amended, in such form and manner, within
such time, subject to such restrictions and conditions, as may be prescribed:
Provided
that no amendment of a bill of entry or a shipping bill or bill of export
shall be so authorised to be amended after the imported goods have been
cleared for home consumption or deposited in a warehouse, or the export goods
have been exported, except on the basis of documentary evidence which was in
existence at the time the goods were cleared, deposited or exported, as the
case may be.
|
Section
149 is being amended so as to empower Board to make regulations specifying
time, form, manner, restrictions and conditions for amendment of any document.
|
Section 157 - General power to
make regulations
|
||
………
|
(ka) the manner of authentication and the time limit for such
authentication, the document or information to be furnished and the manner of
submitting such document or information and the time limit for such
submission, the form and the manner of furnishing alternative means of
identification and the time limit for furnishing such identification, person
or class of persons to be exempted and conditions subject to which suspension
may be made, under Chapter XIIB;”;
“(n) the form and manner, the time limit and the restrictions and
conditions for amendment of any document under section 149.”.
|
Section
157 is being amended so as to empower the Board to make regulations for
purposes of sections 99B and 149 respectively.
|
Section 158 - Provisions with
respect to rules and regulations
|
||
2(ii)
that any person who contravenes any provision of a rule or regulation or
abets such contravention or who fails to comply with any provision of a rule
or regulation with which it was his duty to comply, shall be liable to a
penalty which may extend to fifty thousand rupees
|
2(ii)
that any person who contravenes any provision of a rule or regulation or
abets such contravention or who fails to comply with any provision of a rule
or regulation with which it was his duty to comply, shall be liable to a
penalty which may extend to
|
Sub-section
(2) of section 158 is being amended so as to increase the maximum limit of penalty
for violation of any provision of rules or regulations from fifty thousand
rupees to two
lakh
rupees.
|
AMENDMENTS
IN THE SERVICE TAX ACT, 1994
Service Tax: Amendments
carried out through the Finance (No. 2) Bill, 2019 come into effect on the
date of its enactment, unless otherwise specified: -
|
|
1.
|
As per clause 116 of Finance
(No.2) Bill, 2019, any services provided or agreed to be provided by the State Government by way of grant of
liquor licence, against consideration in the form of licence fee or
application fee or by whatever name it is called, are proposed to be exempted from service tax for during the period
commencing from 1st April, 2016 and ending with the 30th June, 2017.
|
2.
|
As per clause 117
of Finance (No.2) Bill, 2019 any services provided or agreed to be provided by the Indian Institutes of Management
(IIM), as per the guidelines of the Central Government, to their students, by way of the following
educational programmes, except Executive Development Programme, -
(a) two-year full time Post
Graduate Programmes in Management for the Post Graduate Diploma in
Management, to which admissions are made on the basis of Common Admission Test
(CAT), conducted by Indian Institute of Management;
(b) fellow programme in Management;
(c) five year integrated programme
in Management.
are
proposed to be exempted from service tax for during the period commencing
from July 01, 2003 and ending March 31, 2016.
|
3.
|
As
per clause 118 of Finance (No.2) Bill, 2019, any consideration paid in the form of upfront amount (called as
premium, salami, cost, price, development charges or by any other name)
payable in respect of service, by way
of granting of long term lease of thirty years, or more of plots for
development of infrastructure for financial business, provided or agreed
to be provided by the State Government Industrial Development Corporations or
Undertakings or by any other entity having 50% or more ownership of Central Government,
State Government, Union Territory to the developers in any industrial or
financial business area, is proposed
to be exempted from Service Tax for the period commencing from October 01,
2013 and ending June 30, 2017.
|
Bimal Jain
FCA, FCS, LLB, B.Com (Hons)
[TDS related provisions] [Changes in Customs and Service Tax] [Changes in CGST and IGST] [Changes in Central excise] [Budget-Speech] [Key-highlights]
COMMENTS