UNION BUDGET 2015: CHANGES IN EXCISE AND CUSTOMS: Changes in the Customs and the Central Excise law and rates of duty have been propos...
UNION BUDGET 2015: CHANGES IN EXCISE AND CUSTOMS:
Changes in the Customs and the Central Excise law and rates of duty have been proposed through the Finance Bill, 2015 (Clauses 80 to 89, 163, 164 for Customs and Clauses 90 to 104, 163, 164, 184 and 188 for Central Excise). In order to prescribe effective rates of duty and to carry out changes in the Rules made under the respective Acts, the following notifications are being issued:
CUSTOMS
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Notification Nos.
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Date
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Tariff
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No.6/2015-Customs to No.11/2015-Customs
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1st March, 2015
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Non-Tariff
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No.27/2015-Customs (NT)
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1st March, 2015
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CENTRAL EXCISE
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Tariff
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No.5/2015-CE to No.17/2015-CE
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1st March, 2015
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Non-Tariff
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No.3/2015-CE (NT) to No.11/2015-CE (NT)
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1st March, 2015
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CLEAN ENERGY CESS
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No.1/2015-Clean Energy Cess
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1st March, 2015
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M&TP ACT
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No.1/2015-M&TP
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1st March, 2015
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Unless otherwise stated, all changes in rates of duty take effect from the midnight of 28th February / 1st March, 2015. A declaration has been made under the Provisional Collection of Taxes Act, 1931 in respect of clauses 89, 90, 103, 104, 163, 164 and 188 of the Finance Bill, 2015 so that changes proposed therein take effect from the midnight of 28th February/ 1st March, 2015. The remaining legislative changes would come into effect only upon the enactment of the Finance Bill, 2015. Retrospective amendment in the notification issued under the Central Excise Act shall have the force of law only upon the enactment of the Finance Bill, 2015 but with effect from the date indicated in the relevant clause or Schedule.
Ø Change in Excise Duty Rate:
· Exemption of Education Cess and Secondary & Higher Education Cess (SHE) on all Excisable Goods: Education Cess levied on all excisable goods as a duty of excise under Section 91 read with Section 93 of the Finance Act, 2004 is being fully exempted. [Refer Notification No.14/2015-Central Excise dated 1st March, 2015].
Similarly, Secondary & Higher Education Cess leviable on excisable goods as a duty of excise under Section 136 read with 138 of the Finance Act, 2007 is also being fully exempted. [Refer Notification No. 15/2015-Central Excise dated 1st March, 2015].
· Change in Ad Valorem rate of Excise Duty: Simultaneously, the standard ad valorem rate of duty of excise (i.e. CENVAT) is being increased from 12% to 12.5%. Specific rates of Basic Excise Duty on petrol, diesel, cement, cigarettes & other tobacco products (other than biris) are also being suitably changed. In this regard, the First Schedule to the Central Excise Tariff Act, 1985 has been amended by Clause 104 of the Finance Bill, 2015. These changes will come into force with immediate effect owing to a declaration under the Provisional Collection of Taxes Act, 1931. [Refer Sl.Nos.42, 43, 45, 50, 51, 52, 53, 90, 107, 205A, 244, 273, 278, 279, 281, 285, 286, 287, 288 and 289 of Notification No.12/2012-Central Excise, dated 17th March, 2012 as amended by Notification No.12/2015-Central Excise dated 1st March, 2015].
Other Basic Excise Duty rates (ad valorem as well as specific) with a few exceptions are not being changed.
· Notification exempting Education Cess and SHE on CVD rescinded: Notifications No. 13/2012-Customs and No. 14/2012-Customs both dated 17th March, 2012 exempt Education Cess and Secondary & Higher Education Cess leviable as CVD on imported goods got rescinded since Education Cess and SHE leviable on excisable goods are being exempted in general, there will be no corresponding levy as CVD on imported goods. [Refer Notification No.9/2015-Customs dated 1st March, 2015].
· Impact of Exemption of Education Cess and SHE on Certain Goods produced by EHTP/STPU: Sl. No.1A and 1B of Notification No.23/2003-Central Excise, dated 31.03.2003 exempts the Customs component of Education Cess and Secondary & Higher Education Cess. Since Education Cess and Secondary & Higher Education Cess leviable on excisable goods are being fully exempted, there will be no levy of these Cesses either on CVD while calculating the aggregate of the duties of customs or on excise duty leviable under the proviso to section 3 of the Central Excise Act, 1944. Therefore, the entries Sl.No.1A and 1B are being omitted. Also, the entries at Sl.No. 5A, 6 and 7A are being amended so as to substitute the rate of 12% with 12.5%. [Refer Notification No.16/2015-Central Excise dated 1st March, 2015].
· Notification exempting Education Cess and SHE on Clean Energy Cess rescinded: Notifications No.28/2010-Central Excise and No.29/2010-Central Excise, both dated 22nd June, 2010 exempt the levy of Education Cess and Secondary & Higher Education Cess on the clean energy cess leviable on coal. Since Education Cess and Secondary & Higher Education Cess are being exempted on excisable goods in general, Notifications No. 28/2010-Central Excise and No.29/2010-Central Excise, both dated 22nd June, 2010 are being rescinded. [Refer Notification No.17/2015-Central Excise dated 1st March, 2015].
· Rate of Excise Duty increased for goods covered by the Medicinal and Toilet Preparations Act, 1955 is being increased from 12% to 12.5% ad valorem. [Refer Notification No.1/2015-M&TP dated 1st March, 2015].
· No Change in Education Cess and SHE as duty of Customs on Imported Goods: There is no change in Education Cess leviable on imported goods under section 91 read with section 94 of the Finance Act, 2004 as a duty of customs and Secondary & Higher Education Cess leviable on imported goods under section 136 read with 139 of the Finance Act, 2007 as a duty of customs. These Cesses shall continue to be levied on imported goods.
Ø Excise Duty structure on certain goods is being restructured as follows:
· Wafers for use in the manufacture of integrated circuit (IC) modules for smart cards from 12% to 6%;
· Inputs for use in the manufacture of LED drivers and MCPCB for LED lights, fixtures and LED lamps from 12% to 6%;
· Mobiles handsets, including cellular phones from 1% without Cenvat credit or 6% with Cenvat credit to 1% without Cenvat credit or 12.5% with Cenvat credit. NCCD of 1% on mobile handsets including cellular phones remains unchanged;
· Tablet computers from 12% to 2% without Cenvat credit or 12.5% with Cenvat credit;
· Specified raw materials [battery, titanium, palladium wire, eutectic wire, silicone resins and rubbers, solder paste, reed switch, diodes, transistors, capacitors, controllers, coils (steel), tubing (silicone)] for use in the manufacture of pacemakers to Nil;
· Pig iron SG grade and Ferro-silicon-magnesium for use in the manufacture of cast components of wind operated electricity generators to Nil, subject to certification by MNRE;
· Solar water heater and system from 12% to Nil without Cenvat credit or 12.5% with Cenvat credit;
· Round copper wire and tin alloys for use in the manufacture of Solar PV ribbon for manufacture of solar PV cells to Nil subject to certification by Department of Electronics and Information Technology (DeitY).
Ø Changes in valuation of the goods for the purposes of levy of Excise Duty:
· All goods falling under Chapter sub-heading 2101 20, including iced tea has been notified under Section 4A of the Central Excise Act, 1944 (“the Excise Act”) for the purpose of assessment of Central Excise Duty with reference to the Retail Sale Price with an abatement of 30%. Such goods are also being included in the Third Schedule to the Excise Act;
· Goods, such as lemonade and other beverages, have also been notified under Section 4A of the Excise Act for the purpose of assessment of Central Excise duty with reference to the Retail Sale Price with an abatement of 35%. Such goods are also being included in the Third Schedule to the Excise Tariff Act.
Ø Broadening the Tax Base:
· Excise Duty of 2% without Cenvat credit or 6% with Cenvat credit has been levied on condensed milk put up in unit containers. It has also been notified under Section 4A of the Excise Act for the purpose of valuation with reference to the Retail Sale Price with an abatement of 30%;
· Excise Duty of 2% without Cenvat credit or 6% with Cenvat credit has been levied on peanut butter.
Ø Relief measures under the Central Excise:
· Full exemption from Excise Duty is being extended to captively consumed intermediate compound coming into existence during the manufacture of Agarbattis. Agarbattis attract Nil Excise Duty.
Ø Miscellaneous Changes in rate of Excise Duty for specified products:
· Excise Duty on leather footwear (footwear with uppers made of leather of heading 4107 or 4112 to 4114) of Retail Sale Price of more than Rs. 1000 per pair from 12% to 6%;
· Excise Duty levied on the value of duty paid on rails for manufacture of railway or tramway track construction material is being exempted retrospectively for the period from March 17, 2012 to February 2, 2014, if no Cenvat credit of duty paid on such rails is availed;
· Excise Duty on cigarettes has been increased by 25% for cigarettes of length not exceeding 65 mm and by 15% for cigarettes of other lengths. Similar increases are proposed on cigars, cheroots and cigarillos;
· Maximum speed of packing machine is being specified as a factor relevant to production for determining Excise Duty payable under the Compounded Levy Scheme presently applicable to pan masala, gutkha and chewing tobacco. Accordingly, deemed production and duty payable per machine per month has been notified with reference to the speed range in which the maximum speed of a packing machine falls;
· The entry “waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavoured” in the Seventh Schedule to the Finance Act, 2005 related to levy of Additional Duty of Excise @ 5% is being omitted. Till the enactment of the Finance Bill, 2015, the said additional Duty of Excise of 5% leviable on such goods is being exempted. Simultaneously, the Basic Excise Duty on these goods has been increased from 12% to 18%;
· Excise duty on chassis for ambulances has been reduced from 24% to 12.5%;
· Sacks and bags, other than for industrial use falling under Tariff Entry 3923 2100 duty would be leviable at the rate of 15%.
· Pig iron SG grade for manufacture of cast components of wind operated electricity generators falling under Tariff Entry 72011000 duty would be leviable at Nil rate.
· Ferro-silicon-magnesium for manufacture of cast components of wind operated electricity generators falling under Tariff Entry 7202 2900 duty would be leviable at Nil rate.
· Solar water heater and system falling under Sub Heading 841919 duty would be leviable at the rate Nil rate.
· Parts for use in the manufacture of solar water heater and system falling under 8419 or any other Chapter duty would be leviable at the rate Nil rate.
Ø Amendment in the Central Excise Act, 1944:
· An Explanation 3 has been inserted in the Section 3A of the Central Excise Act 1944 (“the Excise Act”) which enable to the Central Government to specify more than one factor relevant to the production of such goods. [Refer Notification No. 5/2015-CE-Tariff dated 1-3-2015 and Notification No. 6/2015-CE-Tariff dated 1-3-2015 issued in respect of the above amendment. These Notifications will be effective immediately.]
· Section 11A of the Excise Act amended as follows:
Section 11A is being amended so as to:
(i) Remove from the statute the category of cases where extended period of time applies but the transactions are recorded in the specified record;
(ii) Amend the provision relating to relevant date to provide definition of relevant date in respect of cases where a return is not filed on the due date and where only interest is required to be recovered.
(iii) Provide that the provisions of section 11A shall not apply to cases where the non-payment or short payment of duty is reflected in the periodic returns filed and that in such cases recovery of duty shall be made in such manner as may be prescribed in the rules.
· Section 11AC is being substituted so as to rationalize the penalty as follows:
Particulars
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Fraud Case
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Other than fraud case
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Duty as determined under sub-section (10) of section 11A of the Excise Act
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Penalty would be leviable equal to duty so determined in the order.
However in respect of period 8-4-2011 to the date of the assent to the Finance Bill 2015, penalty would be leviable 50% of the duty so determined.
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Penalty would be higher of the two:
- 10% of the Duty determined under Section 11A(10) of the Excise Act; or
- Rs. 5000
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Duty and interest payable thereon under section 11AA
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Where duty and interest thereon paid within 30 days of communication of show cause notice, the amount of penalty would be leviable 15% of the duty demanded.
Subject to the condition that the reduced penalty would also be paid within 30 days of communication of show cause notice
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No penalty would be leviable where the duty and interest paid on or before the issuance of Show Cause Notice (“the SCN”) or within 30 days of the SCN
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Duty as determined under sub-section (10) of section 11A of the Excise Act and interest payable thereon under section 11AA the Excise Act paid within 30 days of the date of communication of order of the Central Excise Officer.
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Penalty would be reduced to 25% of the penalty imposed in the order.
Provided further that such reduced penalty is also paid within 30 days of the communication of such order.
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Penalty would be reduced to 25% of the penalty imposed in the order.
Provided further that such reduced penalty is also paid within 30 days of the communication of such order.
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Proceedings in the pending show cause notices can be closed
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On payment of duty, interest and penalty at the rate of 15% of the duty within 30 days of the enactment of the Finance Bill, 2015.
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On payment of duty and interest within 30 days of the enactment of the Finance Bill, 2015.
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Cases where show cause notices are adjudicated after the enactment of the Finance Bill, 2015
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25% of the reduced penalty of the duty provided within 30 days of communication of the adjudication order if the duty, interest and penalty is paid within such time
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25% of the penalty imposed provided within 30 days of communication of the adjudication order if the duty, interest and penalty is paid within such time
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Where in the Appellate preceding the duty amount is modified by the Appellate Authority in the fraud cases then the penalty amount also modified accordingly. Subject to the condition that the additional duty, interest and penalty would also paid within 30 days of such Appellate Authority.
The Amended provisions of the Section 11AC will also govern the cases where no Show Cause Notice has been issued prior to the enactment of the Finance Bill 2015.
UNDER CUSTOMS:
Ø Reduction in duty on certain inputs to address the problem of inverted duty structure:
· ‘Metal parts’ for use in the manufacture of electrical insulators;
· Ethylene-Propylene-non-conjugated-Diene Rubber (EPDM), Water blocking tape and Mica glass tape for use in the manufacture of insulated wires and cables;
· Magnetron upto 1 KW for use in the manufacture of microwave ovens;
· C- Block for Compressor, Over Load Protector (OLP) & Positive thermal co-efficient and Crank Shaft for compressor, for use in the manufacture of Refrigerator compressors;
· Zeolite, ceria zirconia compounds and cerium compounds for use in the manufacture of washcoats, which are further used in manufacture of catalytic converters;
· Anthraquinone for manufacture of hydrogen peroxide;
· Sulphuric acid for use in the manufacture of fertilizers;
· Parts and components of Digital Still Image Video Camera capable of recording video with minimum resolution of 800x600 pixels, at minimum 23 frames per second, for at least 30 minutes in a single sequence, using the maximum storage (including the expanded) capacity.
Ø Reduction in Basic Customs Duty to reduce the cost of raw materials:
· Ethylene dichloride (EDC), vinyl chloride monomer (VCM) and styrene monomer (SM) from 2.5% to 2%;
· Isoprene and Liquefied butanes from 5% to 2.5%;
· Butyl acrylate from 7.5% to 5%;
· Ulexite ore from 2.5% to Nil;
· Antimony metal, antimony waste and scrap from 5% to 2.5%;
· Specified components for use in the manufacture of specified CNC lathe machines and machining centres from 7.5% to 2.5%;
· Certain specified inputs for use in the manufacture of flexible medical video endoscopes from 5% to 2.5%;
· HDPE for use in the manufacture of telecommunication grade optical fibre cables from 7.5% to Nil;
· Black Light Unit Module for use in the manufacture of LCD/LED TV panels from 10% to Nil;
· Organic LED (OLED) TV panels from 10% to Nil;
· CVD and SAD are being fully exempted on specified raw materials [battery, titanium, palladium wire, eutectic wire, silicone resins and rubbers, solder paste, reed switch, diodes, transistors, capacitors, controllers, coils (steel), tubing (silicone)] for use in the manufacture of pacemakers;
· Evacuated Tubes with three layers of solar selective coating for use in the manufacture of solar water heater and system to Nil;
· Active Energy Controller (AEC) for use in the manufacture of Renewable Power System (RPS) Inverters to 5%, subject to certification by MNRE;
· Parts, components and accessories (falling under any Chapter) for use in the manufacture of tablet computers and their sub-parts for use in manufacture of parts, components and accessories are being fully exempted from BCD, CVD and SAD.
Ø Reduction in SAD to address the problem of Cenvat credit accumulation:
· All goods except populated PCBs, falling under any Chapter of the Customs Tariff Act, 1975 (“the Customs Tariff Act”), for use in manufacture of ITA bound goods from 4% to Nil;
· Naphtha, ethylene dichloride (EDC), vinyl chloride monomer (VCM) and styrene monomer (SM) for manufacture of excisable goods from 4% to 2%;
· Metal scrap of iron & steel, copper, brass and aluminium from 4% to 2%;
· Inputs for use in the manufacture of LED drivers and MCPCB for LED lights, fixtures and LED lamps from 4% to Nil.
Ø Increase in Basic Customs Duty on specified products:
· Metallurgical coke from 2.5% to 5%;
· Tariff rate on iron & steel and articles of iron or steel, falling under Chapters 72 and 73 of the Customs Tariff, from 10% to 15%. However, there is no change in the existing effective rates of basic customs duty on these goods;
· Tariff rate on Commercial Vehicles from 10% to 40% and effective rate from 10% to 20%. However, customs duty on commercial vehicles in Completely Knocked Down (CKD) kits and electrically operated vehicles including those in CKD condition will continue to be at 10%.
Ø Decrease in Basic Customs Duty on Specified Products:
· Export Duty on upgraded ilmenite is being reduced from 5% to 2.5%;
· Basic Customs Duty on Digital Still Image Video Camera capable of recording video with minimum resolution of 800x600 pixels, at minimum 23 frames per second, for at least 30 minutes in a single sequence, using the maximum storage (including the expanded) capacity is being reduced to Nil. Basic Customs Duty on parts and components of these cameras is also being reduced from 5% to Nil;
· Concessional Customs Duty structure of Nil Basic Customs Duty, 6% CVD and Nil SAD on specified parts of electrically operated vehicles and hybrid vehicles, presently available upto March 31, 2015, is being extended upto March 31, 2016.
Ø Relief measures under the Customs:
· Exemption to artificial heart (left ventricular assist device) from Basic Customs Duty of 5% and CVD.
Ø Advance Ruling [Notification No. 27/2015–Customs (N.T.) dated 1-03-2015]:
The Scheme of Advance Ruling is being extended to Resident firm in Customs. Further, for this purpose the term firm, sole proprietorship and resident been specifically defined as:
(a) “firm” shall have the meaning assigned to it in Section 4 of the Indian Partnership Act, 1932 (9 of 1932) , and includes-
(i) the limited liability partnership as defined in clause (n) of sub-section (1) of the section 2 of the Limited Liability Partnership Act, 2008 (6 of 2009); or
(ii) limited liability partnership which has no company as its partner; or
(iii)the sole proprietorship; or
(iv)One Person Company.
(b)
(i) “sole proprietorship” means an individual who engages himself in an activity as defined in sub-clause (a) of section 28E of the Customs Act, 1962.
(ii) “One Person Company” means as defined in clause (62) of section 2 of the Companies Act, 2013 (18 of 2013).
(c) “resident” shall have the meaning assigned to it in clause (42) of section 2 of the Income-tax Act, 1961 (43 of 1961) in so far as it applies to a resident firm.
Ø Changes under the Customs Act, 1962 (“The Customs Act”) (Will Come Into Force When the Finance Bill, 2015 is enacted, unless otherwise stated)
· Section 28 of the Customs Act has been amended as:
Proviso to Section 28(2) of the Customs Act has been inserted to provides that, no penalty shall be imposed and proceeding shall be deemed to be concluded, if duty along with interest is paid in full within 30 days from the date of receipt of the notice in cases not involving fraud or collusion or wilful mis-statement or suppression of facts or contravention of any provision of the Act or rules with the intent to evade payment of duty.
Further, in cases involving fraud or collusion or wilful mis-statement or suppression of facts or contravention of any provision of the Act or rules with the intent to evade payment of duty, the amount of penalty payable shall be 15% instead of 25% of the duty specified in the notice or the duty so accepted by that person.
Furthermore, Explanation 3 to Section 28 has been inserted to provide that where a notice under Section 28 (1) (a) or Section 28(4) of the Customs Act, has been served but an Order determining duty under Section 28(8) thereof has not been passed before the date on which the Finance Bill, 2015 receives the assent of the President, then, without prejudice to the provisions of Sections 135 (Evasion of duty or prohibitions), 135A (Preparing to export any goods in contravention of the Customs Act) and 140 (Offences by companies), the proceedings in respect of such person or other persons to whom the notice is served shall be deemed to be concluded if the payment of duty, interest and penalty under the proviso to Section 28 (2) or Section 28(5) thereof is made in full within 30 days from the date on which such assent is received.
· Section 112 (b) (ii) of the Customs Act has been amended as to provide that:
Any person who acquires possession of or is in any way concerned with or in any other manner deals with any dutiable goods, other than prohibited goods, which he knows or has reasons to believe are liable to confiscation under Section 111 of the Customs Act, shall, subject to the provisions of Section 114A thereof, be liable to a penalty not exceeding 10% of the duty sought to be evaded or Rs. 5000, whichever is greater.
Further, in case of short levy or non-levy or short payment or non-payment and erroneous refund of duty for reasons of collusion or any willful mis-statement or suppression of facts, if the duty [under Section 28(8)] along with interest [under Section 28AA] is paid within 30 days from the date of communication of the order of the proper officer determining such duty, then such person is liable to pay 25% of the penalty so determined.
· Section 114 (ii) of the Customs Act has been amended as to provide that:
Any person who, in relation to any dutiable goods, other than prohibited goods, does or omits to do any act which act or omission would render such goods liable to confiscation under Section 113 of the Customs Act, or abets the doing or omission of such an act, shall, subject to the provisions of Section 114A, be liable to a penalty not exceeding 10% of the duty sought to be evaded of Rs. 5000, whichever is greater.
Further, in case of short levy or non-levy or short payment or non-payment and erroneous refund of duty for reasons of collusion or any willful mis-statement or suppression of facts, if the duty [under Section 28(8)] along with interest [under Section 28AA] is paid within 30 days from the date of communication of the order of the proper officer determining such duty, then such person is liable to pay 25% of the penalty so determined.
· Proviso to Section 127A(b) of the Customs Act has been amended as to provide that:
When any proceeding is referred back, whether in appeal or revision or otherwise, by any Court, Appellate Tribunal Authority or any other Authority to the Adjudicating Authority for a fresh adjudication or decision, then such case shall not be entitled for settlement before Settlement Commission.
· Section 127B(1A) of the Customs Act has been omitted:
Section 127B(1A) of the Customs Act stipulates a case in which payments to be made within thirty days from June 1, June 2007 which has become redundant and is being omitted.
· Section 127C(6) of the Customs Act has been omitted:
Section 127C(6) of the Customs Act stipulates a case where authorities under Settlement Commission were directed not to pass an order respect of an application filed on or before the 31.05.2007, later than the 29.02.2008 and in cases filed after 31.05.2007, within 9 months. So, the provisions have become redundant and thus the aforesaid Section is being omitted.
· Section 127E of the Customs Act has been omitted:
Pursuant to Section 127E of the Customs Act, Settlement Commission has no powers to reopen any completed proceedings after expiry of five years from 1-06-2007. Hence, the Section 127E of the Customs Act becomes redundant and therefore is being omitted.
· Explanation to Section 127H(1) of the Customs Act has been omitted:
Explanation to Section 127H(1) of the Customs Act provided clarification that in case of an application filed before Settlement Commission, on or before 31-05-2007, it shall be decided as if the amendments made in the said Section were not in force. Since all the applications filed by 31-05-2007 have necessary been disposed of by 29-02-2008, the Explanation has become redundant and therefore omitted.
· Explanation to Section 127L of the Customs Act has been amended as:
Section 127L of the Customs Act provides the situations in which the person in whose case the order has been passed by the Settlement Commission cannot again approach the Settlement Commission. Further, Section 127L was amended in 2007, which made distinction in respect of the orders passed prior the commencement of Section 102 of the Finance Act, 2007 and after that. In respect of the cases decided after the said commencement, the applicant was barred from making subsequent applications, whereas in the cases decided prior to that he could have made the application if his case was not covered by any of the clauses of Section 127L(1). Furthermore, Section 127L was amended vide Finance Act, 2010, even in cases decided after commencement of section 102 of the Finance Act, 2007 the applicant was allowed to approach Settlement Commission if not hit by any of the clauses to Section 127L(1).Thus, clause (i) and (ii) of Section 127L(1) are being amended so as to delete the phrase “passed under sub-section (7) of the section 127C, as it stood immediately before the commencement of section 102 of the Finance Act, 2007 (22 of 2007) or sub-section (5) of the section 32F” as the same have become redundant.
UNDER SWACHH BHARAT INITIATIVES:
Ø Under the Customs and the Central Excise:
· The Scheduled rate of Clean Energy Cess levied on coal, lignite and peat has been increased from Rs. 100 per tonne to Rs. 300 per tonne. The effective rate of Clean Energy Cess has been increased from Rs. 100 per tonne to Rs. 200 per tonne;
· Concessional Customs and Excise Duty rates on specified parts of Electrically Operated Vehicles and Hybrid Vehicles, presently available upto March 31, 2015, is being extended upto March 31, 2016;
· Excise Duty on sacks and bags of polymers of ethylene other than for industrial use is being increased from 12% to 15%.
UNDER COMPLIANCE FACILITATION UNDER CENTRAL EXCISE AND CUSTOMS:
· Online Central Excise/Service Tax Registration within two working days;
· Facility of direct dispatch of goods by registered dealer from seller to customer’s premises is being provided. Similar facility is also being allowed in respect of job-workers. Registered importer can also send goods directly to customer from the port of importation;
· Penalty provisions in Customs, Central Excise and Service Tax has been rationalized to encourage compliance and early dispute resolution;
· Central Excise/Service Tax assessees are being allowed to issue digitally signed invoices and maintain other records electronically.
Bimal Jain
FCA, FCS, LLB, B.Com (Hons.)
E-mail:info@a2ztaxcorp.com
COMMENTS