TIOL-DDT 2944
05 10 2016
Wednesday

CBEC had issued detailed guidelines for launching of prosecution in relation to offences punishable under Customs Act, vide Circular No. 27/2015-Customs  dated 23.10.2015. Now they have decided to amend Para 6 of the Circular to include Gold among items in relation to which prosecution may preferably be launched immediately after issuance of show cause notice.

Accordingly, the Para 6 of the Circular will now read as:

"Stage for launching of prosecution: Normally, prosecution may be launched immediately on completion of adjudication proceedings. However, prosecution in respect of cases involving offences relating to items i.e. Gold, FICN, arms, ammunitions and explosives, antiques, art treasures, wild life items and endangered species of flora and fauna may preferably be launched immediately after issuance of show cause notice".

Why do they use abbreviations in these circulars meant to make life less miserable? Now what does FICN mean? Why can't they write the full form, Fake Indian Currency Note? Saving paper?

CBEC Circular No.46/2016-Customs., Dated: October 04 2016

Inflation Impact of GST - RBI Vision

THE Reserve Bank of India in its Monetary Policy Report released yesterday professes:

Internationally, 160 countries have some form of value added tax (World Bank, 2015). The experiences of the United Kingdom, Canada, New Zealand and Malaysia suggest that inflation did increase in the period when GST was introduced. Eventually, the inflation impact moderated over a year, except in the case of United Kingdom where it remained elevated, due mainly to the oil crisis in 1973. Estimates of pass through of changes in the VAT rate to consumer prices for 17 Euro zone countries for the period 1999-2013 show that, on average, the pass-through is much less than full and is highly sensitive to the type of VAT change. For changes in the standard rate, for instance, the final pass-through is about 100 per cent; for reduced rates, however, it is significantly less at around 30 per cent. The short-term effects on inflation depend upon a host of factors, including the tax rate at which GST is implemented, the tax base and efficiency of the administrative machinery.

Looking ahead, inflation developments are likely to be shaped by the implementation of the GST. While the creation of a unified goods and services market in the country would reduce supply chain rigidities, cut down on transportation costs and also bring down costs in general through improvements in productivity, it could also produce a short-lived pass-through to the inflation trajectory. The cross-country experience suggests that, controlling for country-specific characteristics, one-off effects tend to dissipate after a year of its implementation. The impact of the implementation of GST on CPI inflation in India would largely depend on the standard rate that would be decided by the GST Council. The dual rate GST structure with a standard rate of 18 per cent and a low rate of 12 per cent (consistent with a revenue neutral rate (RNR) of about 15-15.5 per cent) is expected to have a minimal impact on inflation. If the standard rate is increased to 22 per cent (consistent with an RNR of 17-18 per cent), the impact on aggregate inflation would be in the range of 0.3-0.7 per cent, concentrated in select groups like healthcare (excluding medicines). As the standard rate increases from 22 per cent to 26 per cent and 30 per cent, the impact on CPI would increase from 0.6-1.3 per cent and to 1.0-1.9 per cent (with input tax credit), respectively. The general consensus is that the impact on consumer price inflation is likely to be moderate if the standard GST rate is at 18 per cent - in fact, overall price levels may go down due to more efficient allocation of factors of production.

RBI states, "By current reckoning, the pass-through of the goods and services tax (GST) will likely commence from April 2017 and last for about 12-18 months, going by the cross-country experience."

NACEN to Train GST Trainers

AS a part of Government of India's trade outreach programme, National Academy of Customs, Excise & Narcotics (NACEN) - the apex indirect tax training institute of Government of India, invites Expression of Interest (EOI) from training institutes and professional bodies desirous of imparting GST Training to industry, trade and other stakeholders, as 'Approved Training Partners' (ATPs) under the 'GST Training Accreditation Programme' of NACEN.

The objective is to provide quality and authorative (what they mean is authoritative; so much for quality!) GST training at reasonable cost to trade, industry and other stakeholders, as a part of the Government of India's Trade Outreach Programme for successful rollout of GST.

Training would be conducted by Accredited GST Trainers (AGTs) - trained and certified as such, by NACEN on successful completion of trainer's training with a qualifying test.

What we need is proper education and not training. Usually animals are trained and men are educated!

EOI - GST

FTP -Export Performance from SEZ

DGFT has amended Para 4.94(a)(i) and 4.94(a)(ii) of the Hand Book of Procedure 2015-20. With this amendment, the export performance of Gems and Jewellery items from SEZ/EOU units shall not be clubbed with export performance from DTA units of any IEC holder for grant of Nominated Agency Certificate.

DGFT Public Notice No.37/2015-20, Dated: October 04 2016

FTP - Minimum Import Price on Iron and Steel

THE Minimum Import Price fixed for imports of iron and steel products, by Notification No. 38/2015-2020 dated 5th February, 2016 was to be valid till 4th August 2016.Government had decided to continue the MIP for two months till 4th October 2016 for 66 items by Notification No. 20/2015-20, dated 04.08.2016. Now the government has extended it for further two months till 4th December 2016.

DGFT Notification No.30/2015-20, Dated: October 04 2016

GST - Central Revenue Officers Protest

STAFF Associations of CBEC recently met in Mumbai and passed many resolutions on GST. Their grievances included:

1. Failure to take into confidence the Staff Associations in CBEC on Organizational Structure & HR issues.

2. Service Tax [Services above threshold level falling within GST] Administration to be in the exclusive domain of the Centre.

3. Audit, Preventive/Anti Evasion & Intelligence to be exclusively handled by the Central Government

4. Dual Control of the Centre & States [For Goods] across the Spectrum.

5. Human Resource & Organizational Matters to be finalized with the consent of all associations in CBEC.

The Associations propose:

A Lunch Hour Demonstration in front of all Commissionerates & a lunch hour gathering in front of the Residence of the Finance Minister to hand over a memorandum containing Grievances on the 14th of October 2016 followed by one more on the 9th of November 2016, Black Badges on the 7th of December  2016, day long dharna on the 5th of January, 2017 and finally Mass Casual Leave by all employees on the day the Union Budget is presented.

The meeting was attended by Indian Revenue Service [Indirect Taxes] officers' Association; All India Association of Central Excise Gazetted Executive Officers; All India Appraising Officers' Federation; All India Central Excise Inspectors' Association; All India Central Excise & Service Tax Ministerial Officers Association; All India Central Excise & Customs Gr. C Drivers' Federation; All India Central Excise & Customs Gr.C [Non Ministerial] Officers Association, according to R. Chandramouli, President, All India Association of Central Excise Gazetted Executive Officers.

A Sixty Year Old Custom House

THE Cochin Custom House building is sixty years old.

Given below is the PIB Press Release dated 28th September 1956.

PRESS INFORMATION BUREAU
GOVERNMENT OF INDIA
NOT TO BE PUBLISHED BEFORE SEPTEMBER 29, 1956.
NEW CUSTOM HOUSE AT COCHIN

SHRI A.C. GUHA TO OPEN

Ernakulam, September 28, 1956.

The new Administrative Office of the Cochin Customs Department will be formally opened tomorrow by Shri Arun Chandra Guha, Union Minister for Revenue and Defence Expenditure.

The Office is situated at the northern end of Willingdon Island overlooking Ernakulam Town on the east and Port of Cochin on the West across the blue lagoons. Appropriately enough this new building will be named "Asulk Griha" as it stands astride the Cochin Port and its Administrative Offices, adding a new vignette to the fast changing topography of Willingdon Island.

The Customs Department at the Cochin Port has been in existence for over 9 decades. Before 1947 the centre of activity of the Customs was on the Fort Cochin side of the Mattancheri Channel and the department was housed successively in two small buildings which have since been transferred to the Port Administration. With the gradual development of the Port of Cochin, Willingdon Island has come to be the hub of activity of the Port and consequently the Customs Department shifted its Administrative Offices from Fort Cochin to Willingdon Island in 1947. In August 1952 the old Custom House and the Fort Cochin Custom House buildings were sold to the Port Administration and 3.1 acres of land belonging to the Customs Department at Fort Cochin were exchanged with four acres of land on Willingdon Island with the Port Authorities. This new building has been constructed on 1.7 acres of land thus exchanged.

"Asulk Griha" has a strong room inside the Cash Section with special safety arrangements for keeping cash and valuables. Sufficient floor area has been allotted for the Customs Laboratory which will soon be equipped with all necessary modern fittings and appurtenances. The plinth area of the building, the estimated cost of which is about Rs. 6,13,000 is approximately 24,000 square feet.

THE ABOVE IS NOT TO BE PUBLISHED BEFORE SEPTEMBER 29, 1956.

The PIB Press Release

Until Tomorrow with more DDT

Have a nice day.

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