TIOL-DDT 2918
29 08 2016
Monday

AS per sub-regulation (3) of the Handling of Cargo in Customs Areas Regulations, 2009,

The Customs Cargo Service provider for custody of imported goods or export goods and for handling of such goods in a customs area shall execute a bond equal to the average amount of duty involved on the imported goods and ten per cent of value of export goods likely to be stored in the customs area during a period of thirty days and furnish a bank guarantee or cash deposit equivalent to ten per cent of such duty:

Now the thirty is made ten.

As per Sub-regulation (4),:

The Customs Cargo Service provider for custody of imported goods or export goods and for handling of such goods in a customs area execute a separate bond for an amount equal to ten percent of value of export goods with a bank guarantee for an amount equal to ten percent of the value of the bond, towards the export goods transported from the customs area to any other customs area for export or transshipment, as the case may be;

Now a proviso is added:

Provided that the condition of furnishing of bank guarantee shall not be applicable to ports notified under the Major Ports Act, 1962 (38 of 1963) or to the Central Government or State Governments or their undertakings or to the customs cargo service provider authorised under Authorised Economic Operator Programme.

Notification No. 115/2016-Customs (NT)., Dated: August 26 2016

Customs - Guidelines on safety and security of premises where imported or export goods are loaded, unloaded, handled or stored

BOARD's Circular No. 4/2011-Cus  dated 10.1.2011, prescribed comprehensive guidelines on safety and security of premises where imported or export goods are loaded, unloaded, handled or stored. It has been specifically provided that imported goods or export goods which are hazardous in nature shall be stored at the approved premises of the customs cargo service provider (CCSP) in an isolated place duly separated from other general cargo, depending upon classification of its hazardous nature such as explosives, gases, flammable liquids, flammable solids, poisonous and infectious substances, radioactive material or any hazardous chemicals defined under respective rules.

It is further provided that the space allocated for storage of hazardous cargo within the notified premises should be of proper construction including appropriate heat or fire resistant walls, RCC roofing, flooring. Such area shall be situated at a minimum distance of 200 metres away from main office, administrative, customs office building so that the storage of hazardous cargo is in such a manner that it does not endanger the people working in the premises.

Board has issued revised guidelines. The guidelines in so far as prescribing the distance to be maintained between hazardous cargo including explosives and general cargo or administrative building in a Customs area would be as follows:

a. Among the various hazardous goods imported or exported, explosives have to be considered separately in view of the severity of hazard, safety procedure and skill etc. required in their handling and storage.

b. The safe distances between buildings and hazardous cargoes other than explosives varies from 3 meters to 30 meters, in various rules and practices, in other parts outside the country. In order to have uniformity, the distance of 30 meters is prescribed to be maintained between hazardous cargo (other than explosives) and administrative buildings. However, the distance of 200 meter as mentioned in CBEC Circular No.  4/2011  would be observed between the hazardous cargo (explosive in nature) and the administrative buildings. The distance to be maintained between hazardous cargo and general cargo would be as prescribed in IMDG (International Maritime Dangerous Goods) Code for storage in port areas.

c. The safe distance for storing hazardous goods including explosives on land i.e Container Depot, CCSP area. Customs notified area etc. (other than port area) for which specific rules exists shall be guided by said rules i.e Gas Cylinder Rules, 2004; the Explosive Rules, 2008; Petroleum Rules, 2002; Static and Mobile Pressure Rules, 1981 etc., as applicable.

d. In case of anomaly, between port rules and respective specific rules governing storage of a particular hazardous good, the provision of specific rules shall override the port rules.

CBEC Circular No. 40/2016-Customs., Dated: August 26 2016

FTP - MEIS Rate for Onion Notified

DGFT has notified the MEIS (Merchandise Exports from India Scheme)rate for Onion. It would be effective for exports made upto 31.12.2016.

DGFT Public Notice No. 26/2015-2020., Dated: August 26 2016

Exchange Rate for Rand

GOVERNMENT has notified new rates of exchange for South African Rand with effect from 27th August, 2016

Notification No. 117/2016-Customs (NT)., Dated: August 26 2016

Letters from MPs - Babus to Reply Promptly

THE Department of Administrative Reforms & Public Grievances (DAR&PG) has on various occasions impressed upon all the central Ministries/Departments that guidelines mentioned in the Central Secretariat Manual of Office Procedure (CS MOP) for handling letters received from Members of Parliament should be scrupulously followed. It stipulates that each communication received from Members of Parliament will be acknowledged within 15 days, followed by a reply within the next 15 days of acknowledgement sent.

The DoPT wants the officials to be suitably sensitized on the issue and are advised to send prompt reply to letters written by Members of Parliament.

CBEC F.No.C-30013/8/2016 Ad.IV-A)., Dated: August 22 2016

Disposal of Confiscated Goods - Board's Revised Guidelines

CVC has been emphasizing on e-commerce/e-procurement/e-sales for enhancing transparency, giving equal opportunities to all. Accordingly, CVC vide Office Order No.46/9/03 dated 11th September 2003 (No.98/ORD/1) has stated that the departments/ organizations may themselves decide on e-procurement/reverse auction for purchases or sales and work out the detailed procedure in this regard. It has, however, to be ensured that the entire process is conducted in a transparent and fair manner.

Board had earlier appointed a Task Force to examine the various issues arising out of the audit review, and to suggest effective measures to put in place a permanent mechanism for expeditious disposal of cargo including confiscated/seized goods. Based on the recommendations of a Task Force, Board had streamlined the procedure for disposal of goods which inter-alia include its approval for setting up of a centralized e-auction portal by engaging the services of M/s. MSTC Ltd. Mumbai, a PSU under the Ministry of Steel. 

CBEC Circular No. 39/2016-Customs, Dated: August 26 2016

DGFT Grievance Committee

PARA 9.08 of HBP, 2015-2020 provides for a grievance committee at the level of DGFT, HQ and at the Zonal RAs for speedy redressal of grievances of trade and industry pertaining to the Foreign Trade Policy (FTP) and the related procedure. Accordingly, it has been decided to constitute the above Grievance Committee at the level of HQrs and Zonal RAs. The Grievance Committee at HQ shall endeavour to meet once in every quarter and once in every month at the Zonal RAs.

The Grievance committee shall have the following terms of references:

1. To review grievance cases pending beyond reasonable time with RA/HQ for speedy disposal.

2. To review resolution of sector specific grievances brought forth by members or obtained from other sources.

3. To suggest reform in policy & procedure.

DGFT Trade Notice No. 14/2015-2020., Dated: August 24 2016

Government Notifies 2% Excise Duty for Aviation Fuel for Regional Connectivity Scheme (RCS)

THE primary objective of the Regional Connectivity Scheme (RCS) of the Ministry of Civil Aviation, is to facilitate / stimulate regional air connectivity by making it

affordable. As per the Scheme, an all-inclusive airfare not exceeding Rs.2,500 per RCS Seat will be applicable. Government has proposed several concessions like no landing and parking charges on RCS flights. Excise Duty at a rate of 2% shall be levied on Aviation Turbine Fuel (ATF) purchased by Selected Airline Operators from RCS Airports for an initial period of three (3) years from the date of notification of this Scheme.

Accordingly, Government has notified the concessional rate of 2% excise duty for Aviation Turbine Fuel drawn by operators or cargo operators from the Regional Connectivity Scheme (RCS) airports, till 25th day of August, 2019.

The Scheme proposes that Service Tax will be levied on 10% of the taxable value (abatement of 90%) of tickets for RCS Seats on an RCS Flight, without any input credit, for an initial period of 1 year from the date of notification of the Scheme by MoCA. Subsequently, this will be reviewed and notified accordingly. Service Tax will be payable by the passengers over and above the specified Airfare Cap.

CBEC is yet to notify the service tax concession.

Last week, Maharashtra became the first State to sign up for the Regional Connectivity Scheme.

Civil Aviation Minister Ashok Gajapathi Raju said the government will fast-track the development of airports at Shirdi, Nanded, Akola, Jalgaon, Solapur and Kolhapur to be readied for regional connectivity in the state.

Notification No. 32/2016-CE., Dated: August 26 2016

No Extension for CESTAT Member

DDT 2902 03 08 2016 reported a Bar Association representation to the Prime Minister against granting extension to a CESTAT Member. It was rumoured that the Member's extension has almost been cleared. But now it is confirmed that the Government has decided not to grant the extension.

In a letter to Mr. RK Jain, President of the CESTAT Bar, the Revenue Department stated,

I am directed to refer to your communications dated 18.07.2016, 20.07.2016, 26.07.2016, 29.07.2016 and 08.08.2016 on the subject cited above and to say that the matter has been examined on merits in the Department and the proposal for grant of extension of service to Sh. R K Singh, Member (Technical), CESTAT has not been agreed to.

MoF Department of Revenue F.No.A.50050/176/2016-Ad.1C(CESTAT)., Dated August 18 2016

Fake Raid - Central Excise Superintendent Sentenced to Five Years Imprisonment

IN 2012, in a sensational case, a Commissioner of Central Excise and a Superintendent working under him were arrested. The charges made by the CBI were in brief:

Hemant Gandhi was acting as a middleman for accused Dr. A.K. Srivastava and Lallan Ojha, who were respectively posted as Commissioner and Superintendent of Central Excise at the relevant time. The allegations are that they were involved in obtaining illegal gratification by corrupt and illegal means from the businessmen. Further, the allegations are that they had conspired to conduct an unauthorized raid at the business premises of Dalip Aggarwal and Anand Aggarwal. It was alleged that in furtherance of the conspiracy, accused Hemant Gandhi had shown the premises of Aggarwals to Lallan Ojha on the evening of 27.12.2011 and it was decided to conduct a raid on the morning of 28.12.2011. In the process a team of officials of Central Excise led by accused Lallan Ojha conducted surprise raid at the godown premises of Dalip Aggarwal and Anand Aggarwal on 28.12.2011 under the overall supervision and control of accused Srivastava. Then they negotiated with Aggarwals for an illegal gratification for not taking any action and made an initial demand of Rs. 2 crore which was ultimately finalized at Rs. 60 lac. A sum of Rs. 40 lac was received in cash and a cheque of Rs. 20 lac was issued by Aggarwals as security for the remaining amount of bribe. Out of the said amount, a sum of Rs. 3 lac was paid to Ojha as his share and the said amount was given on 2.1.2012 to his driver who kept the same in the dickey of the car parked at his office at ITO. Accused Lallan Ojha was apprehended and got recovered Rs. 2,96,500/- from the dickey of his car. His driver confirmed that this money was delivered to him by an unknown person at the instance of Ojha.

The Charge Sheet against the Commissioner was discharged by the Delhi High Court in 2013 and the case continued against the Superintendent.

On Friday, the Delhi CBI Court sentenced the accused Superintendent Lallan Ojha to five years imprisonment.

The Court observed, "This is a sordid story where victimized businessmen were triply suffered. First, due to illegal raid; second, due to having paid money to public servants without doing any illegality in the business and, third, having been prosecuted."

There were three other Superintendents in this case who are also in trouble. The Court observed, "From the record of this case, it appears that S.K. Singh, Superintendent (PW12), Sunil Kumar, Superintendent (PW21) and K. N. Srivastava (PW-29) were also members of the fraud raid under the leadership of convict Lallan Ojha and they even knew the nature of the raid. Although, they had been cited as prosecution witnesses probably with a view that they may disclose everything before the court, unfortunately, they did not come up to the expectations of the prosecution and even resiled from their statements under Section 164 Cr.PC. In my opinion, atleast departmental action should be initiated against them for dereliction of duty. I recommend that CBI should examine this aspect and if deemed fit, appropriate action may be recommended to Central Excise Department against these officials."

Please also see DDT 1814 14 03 2012; DDT 2068 19 03 2013; DDT 2239 27 11 2013.

Until Tomorrow with more DDT

Have a nice day.

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