TIOL-DDT 2893
21 07 2016
Thursday

NOTIFICATION No.24/2005-Cus dated 01.03.2005 as amended by Notification 132/2006-Cus dated 30.12.2006 (Sr. no. 15) exempts

a) All prepared unrecorded media for sound recording or similar recording of other phenomena, other than cards incorporating a magnetic stripe

b) Recorded media for reproducing phenomena other than sound or image.

falling under Chapter Heading 8523, when imported into India.

The CBEC clarifies that this exemption is extendable to Micro/Mini SD cards classified under CTH 8523 51 00 of the first schedule of the Customs Tariff.

Board wants the Commissioners/Principal Commissioners to issue suitable Public Notice/Standing Order for the benefit of all stake holders and Departmental officers.

Board also wants all pending assessments, if any, may be finalized accordingly.

Closure of EPCG authorizations in case of supplies to SEZ units where exports proceeds have not been realized through Foreign Currency Account (FCA)

PARA 5.7.2 of HBP 2004-09 (RE 2008) and the relevant Paras of the earlier policies stipulates that:

"Export proceeds shall be realized in freely convertible currency except for deemed exports. Exports to SEZ units/Supplies to developers / Co-developers, irrespective of currency of realization would also be counted for discharge of Export obligation".

Para 5.7.2 of HBP 2009-14 read with relevant Paras of earlier policies did not stipulate that DTA units supplying goods under EPCG scheme to SEZ units had to realise payment from Foreign Currency Account (FCA) of SEZ unit, for discharge of Export Obligation. Moreover, Rule 30(8) of SEZ Rules, 2006 do not stipulate that it is mandatory for SEZ units to make payment to EPCG authorisation holders from Foreign Currency Account (FCA) of the unit.

DGFT has decided that closure/redemption/EODC may be allowed in cases where EPCG authorisation holder has made supplies to SEZ units and has not realised the proceeds from the Foreign Currency Account (FCA), in case of supplies which have been made prior to 1.4.2015.

However, DGFT further clarifies that Para 5.11 of HBP 2015-20 under the current FTP provides that exports to SEZ units / supplies to developers / co-developers shall be taken into account for discharge of EO provided payment is realised from Foreign Currency Account of the SEZ unit. The para reads as:

Export proceeds shall be realized in freely convertible currency except for deemed exports. Exports to SEZ units /Supplies to developers/ co-developers irrespective of currency of realization, would also be counted for discharge of Export Obligation. Realization in case of supplies to SEZ units shall be from foreign currency account of the SEZ unit .

Hence, DGFT clarifies that condition of Para 5.11 of HBP 2015-20 shall have to be complied in respect of EPCG authorisations issued under  FTP 2015-20 . Para 5.11 of HBP shall also be applicable in respect of EPCG authorizations issued under the earlier policies but where exports have been made on or after 1.4.2015 or payments have been realised after 31.03.2015.

Please also see:

1. Export Products to SEZ - Payment by Foreign Currency Account - DDT 2736 02 12 2015.

2. Export to SEZ units from DTA - Receipt in Indian Rupees - DDT 2784 11 02 2016

DGFT Trade Notice No. 10/2016., Dated July 20, 2016

Give Back Those Bills of Entry

IN a meeting of the Regional Advisory Committee of Bangalore Zone, an assessee raised a point that they are not getting back original Bills of Entry which they submit for refund/finalization of provisional assessment, which are also sought by the AG's Audit during the audit.

The Chief Commissioner directed the Commissionerates to return the original bills of entry once refund is sanctioned with an endorsement thereon. Further he also informed that the issue will be taken up with the Chief Commissioner (Customs).

Where the Taxpayer is treated with respect

THE Kakinada Central Excise Commissionerate has adopted several best practices towards Taxpayer Education; Image Building; Effective use of Technology and Community Service. The writing on the wall in this image of a Divisional Office reads as,

Welcome to dear taxpayers who are partners in the progress of the Nation.

The Commissionerate has conducted a series of sessions for the benefit of tax payers like awareness sessions on basic provisions of service tax for lay businessmen and small factories; giving clarity on legal and procedural nuances for assessees and sessions for refund-claiming SEZ's for expeditious clearance of claims.

Website name, Address, fax, etc. of each office in the commissionerate were added on Google map for easy identification and information of assessees.

The Commissionerate is making effective use of bulk SMS to reach out to taxpayers and also for quick communication among the 170 odd officers and staff in the Commissionerate. NIC's free bulk SMS application ‘Quick SMS' is being used for this purpose.

Combining data from ACES, NSDL & EDW, a comprehensive profile of assessees was created reg. their payment & return-filing behaviour.

The communications to assessees range from conveying greetings on account of Central Excise Day to alerts regarding non-filing of returns, non-payment of taxes for a particular month etc. Responding to these SMSs, there was improved compliance on the front of return filing and Rs. 10 Lakhs was paid by an assessee in response to the SMS.

The Commissionerate has launched Project e-Sampark - standardized official communication through website, e-mail & SMS in the Commissionerate. One of the basic principles emphasized in the Standing Order issued by the Commissionerate is, e-mail shall be the default mode of official communication in the Commissionerate. Once an e-mail is sent from an official e-mail account to another official e-mail account, it shall not be sent again by post or fax.

This kind of offices will command respect from the assessees and should be replicated all over the country.

GST Bill on Fast Track

UNION Minister Venkaiah Naidu addressing the ASSOCHAM yesterday said, "the government is continuously engaging itself with different parties not only with Congress party but possibly each and every party. At the end of the day, we want to get GST passage through consensus. The biggest beneficiaries of the GST will be state. The signals I am getting from all sides is positive. I hope the GST Bill will be passed during this session itself"

MoS, Finance, Arjun Ram Meghwal said the Congress demand for capping the GST rate in the Constitution was "not practical" and the government was trying for a consensus.

He said, "There are many chief ministers - of UP, Odisha, West Bengal, Bihar - who all want GST to come fast...We hope the Rajya Sabha will be able to pass the Bill in the third week of the session”

Until Tomorrow with more DDT

Have a nice Day.

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