Maintenance of records in digital form - costly for small EOU
TIOL-DDT 2923
05 09 2016
Monday
WE received this mail from a netizen -
Notification no. 52/2003-Cus provides for duty free import by EOUs. It required the EOU to work under Customs Bond. Accordingly, EOUs were obtaining Licence u/s 58 and permission u/s 65 of Customs Act. They were also required to maintain a warehousing register.
Vide notification 44/2016-Cus dated 29 July 2016, which amended the notification 52/2003-CE, the warehousing provisions have been removed.
However, in a surprising move, the Board has made maintenance of record in digital form compulsory. This is envisaged in Board Circular 35/2016-Cus dated 29 July 2016.
The digital records need to incorporate audit trail. Board says, it should incorporate:
…a secure, computer generated, time-stamped electronic record that allows for reconstruction of the course of events relating to the creation, modification, or deletion of an electronic record and includes actions at the record or system level, such as, attempts to access the system or delete or modify a record.
This is certain to create operational problems for small EOUs. They can't afford to install an ERP. It will be costly. In fact, they are unable to even maintain their records in MS Excel. The Board should allow the option of manual records.
Will CBEC react?
Customs Exemption to Flat copper wire for solar photovoltaic cells or modules
As per Sl. No. 335B of Notification No. 12/2012 - Cus dated 17.03.2012, Flat copper wire for use in the manufacture of photovoltaic ribbon (tinned copper interconnect) for manufacture of solar photovoltaic cells or modules are exempted
If, the importer at the time of import,-
(a) furnishes in all cases a certificate to the Deputy Commissioner of Customs or the Assistant Commissioner of Customs, as the case may be, from an officer not below the rank of a Deputy Secretary to the Government of India in the Department of Electronics and Information Technology (DeitY) recommending the grant of the exemption and the said officer certifies that the goods are required for the specified purpose; and
(b) furnishes an undertaking to the Deputy Commissioner of Customs or the Assistant Commissioner of Customs, as the case may be, to the effect that,-
(i) he shall use the imported goods for the purpose specified; and
(ii) in case he fails to comply with item (i), he shall pay an amount equal to the difference between the duty leviable on the imported goods but for the exemption under this notification and that already paid at the time of importation.
Now this condition is changed to:
If the importer follows the procedure set out in the Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 1996.
Notification No. 47/2016-Customs, Dated: September 02 2016
Central Excise Exemption to Round copper wire or flat copper wire for solar photovoltaic cells or modules
AS per Sl. No. 215A of Notification No. 12/2012-CE, dated 17.03.2012, Round copper wire or flat copper wire for use in the manufacture of Photovoltaic (PV) ribbon (tinned copper interconnect) for manufacture of solar photovoltaic cells or modules are exempted
If, before clearance of the goods, the manufacturer produces to the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, a certificate from an officer not below the rank of a Deputy Secretary to the Government of India in the Department of Electronics and Information Technology (DeitY) recommending the grant of this exemption and the said officer certifies that the goods are required for the specified purpose.
Now this condition is changed to:
Where such use is elsewhere than in the factory of production, the exemption shall be allowed if the procedure laid down in the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001, is followed.
Notification No. 33/2016-Central Excise., Dated: September 02 2016
GSTN Needs an Executive Vice President - Commissioners are Eligible
GSTN has invited applications for filling up of one position of Executive Vice President. Commissioners of Central Excise are eminently qualified.
The EVP is expected to design the overall strategy for Services and lead the creation of processes that enable effective interface between the GST Policy/ Process Groups and the Technology team.
He would also be responsible for understanding the GST policy/ processes related to Services which include GST Common Portal (Core Services/Registration, Returns, Payment & Back End Services- IGST settlement and others), Cafeteria/ Value Added Services, Outreach and Capability Building, Tax Payer Profiling Utility and providing inputs (business requirements) to the Technology team for system implementation.
He would get a minimum pay of Rs. 1,82,000 and HRA of Rs.80,000, Medical reimbursement, LTA, Child Education Allowance, Telephone reimbursement, Leave Salary & Pension Contribution, Performance Linked Incentive (up to 50% of Basic Pay + DA) etc. He will also get a company vehicle for official use.
Serving Officers of the Indian Revenue Service (Customs & Central Excise) or State Commercial Tax Departments currently drawing Grade Pay of Rs 10,000 are welcome to apply. The maximum age limit would be 56 years as on last date of receipt of applications. Experience of 8-10 years in tax policy formulation is required.
CBEC F.No.A.35017/80/2016-Ad.II., Dated: September 01 2016
FTP - minimum value addition for export of Silver/ Platinum jewellery
PARA 4.61 of the Handbook of Procedures 2015-2020, fixes the minimum value addition for gold jewellery, articles etc. This is now amended to include Silver/ Platinum jewellery and articles thereof. This would be effective retrospectively from 01.04.2015 as they were inadvertently left out earlier.
Who is responsible? Certainly not the exporter!
But the Law in Government is, 'if a babu fails, the citizen suffers'.
DGFT Public Notice No. 28/2015-2020., Dated: September 02 2016
FTP - Relaxation in export policy for export of Red Sanders wood
PROHIBITION on export of Red Sanders wood in log form has been relaxed for export of 383.132 MT of Red Sanders wood, in log form through State Governments of Maharashtra and Tamil Nadu.
DGFT Notification No. 25/2015-2020., Dated: September 02 2016
Anti Dumping Duty On Glass Fibre Lapses - Reimposed
PROVISIONAL Anti Dumping Duty on imports of Glass Fibre and articles originating in, or exported from People's Republic of China, was imposed vide Notification No. 75/2010-Customs, dated the 14th July, 2010. The definitive anti dumping duty was imposed on it for a period of five years from the date of imposition of the provisional anti-dumping duty, that is, the 14th July, 2010, by Notification No. 30/2011-Customs, dated the 4th March 2011.
Central Government had extended the anti-dumping duty vide notification No. 33/2015-Customs (ADD), dated the 13th July, 2015, dated the 13th July, 2015 up to and inclusive of 13th July, 2016.
The designated authority has recommended continuation of ad-valorem antidumping duty, but obviously, the Government could not extend it before 13th July 2016 and so now they have imposed the anti dumping duty again afresh.
This is certainly better than bringing it through the backdoor by an illegal notification.
Notification No. 48/2016-Cus (ADD)., Dated:September 01 2016
CESTAT Members Transferred
THE President of CESTAT has transferred Mr. PK. Choudhary, Member (Judicial) at CESTAT, Chennai to the Kolkata Bench.
Mr. Madhu Mohan Damodhar, Member (Technical), at CESTAT, Hyderabad is transferred to Chennai.
Chennai had two Judicial Members and no Technical Member, while Kolkata had one Technical Member and no Judicial Member. Now, with these two transfers, both Chennai and Kolkata have a division bench each consisting of a judicial Member and a Technical Member, but in the process the Hyderabad Division Bench has collapsed. Now there is only one Judicial Member and no Technical Member in Hyderabad. The Hyderabad Bench started functioning in December 2015 and since then, till Mr. Damodhar joined in June 2016, there was no regular Division Bench. And now he is transferred.
F.NO. 27(39)/TRANS.POLICY/CESTAT/ADMN.08., Dated: September 02 2016
No TA/DA for Some Transferred CESTAT Members
THE Transfer order states that Mr. Madhu Mohan Damodhar, Member (Technical), at CESTAT, Hyderabad who is transferred to Chennai in administrative exigency and public interest is not entitled for TA/DA etc. as per rules.
When a Member is transferred in administrative exigency and in public interest, why should he be denied TA. It could be that the Member must have requested for a transfer, but he is transferred in public interest and due to an administrative exigency. The Tribunal wants him in Chennai as much as he wants to be in Chennai. After all, any transferred official has to spend quite a bit of money for relocation. It will cost the Government a paltry sum of a lakh of rupees to pay TA, but it will be a substantial amount of money for the official. Tribunal Members work under difficult conditions and they should not be denied small benefits like a transfer TA.
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DDT Question - What is Constitutional Authority for levy of Service Tax?
IT's a long time since DDT asked a question to the Netizens. While so much noise is being made about GST, the fundamental question is:
What is the authority to levy Service Tax? How is the Central Government competent to collect Service Tax?
We are eagerly waiting for your answer at vijaywrite@tiol.in
It is like the story of the man who decided that he would not enter the water until he had learnt to swim
- Nani Palkhiwala
- Was he talking of GST?
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Happy Ganesh Chaturthi
Until Tomorrow with more DDT
Have a nice day.
Mail your comments to vijaywrite@tiol.in
