TIOL-DDT 2716
02 11 2015
Monday

GOODS can be cleared without payment of excise duty for export. The export can be under supervision and sealing of the packages or containers by the Central Excise officers and can also be under self sealing. The advantage of getting the containers sealed by the Central Excise Officers is that they are not normally further examined by the Customs at the port. It is easier and less expensive to deal with Central Excise officers than Customs officers.

It seems CBEC has received references from the trade as well as from field formations regarding problems faced by trade in sealing of Bulk Cargo for export under bond under Notification No.  42/2001-Central Excise  (N.T.), dated 26.06.2001. It has been pointed out that bulk cargo for e.g. coal, iron-ore, alumina Concentrate, heavy machinery etc. are difficult to seal in packages or container and hence a suggestion has been made that there is a need to prescribe procedure for export of such goods.

And so Board has prescribed a complicated procedure.

The Notification No. 42/2001-CE(NT) has been amended to stipulate that where the nature of goods is such that the goods cannot be sealed in a package or a container such as coal or ore, etc., exemption from sealing of package or container may be granted by the Principal Chief Commissioner or Chief Commissioner of Central Excise subject to safeguard as may be specified by him in the permission.

If you want to export without sealing this is how it happens.

1. Apply to the Principal Chief Commissioner/Chief Commissioner with a copy to Deputy Commissioner/Assistant Commissioner. And explain to them why the goods can't be sealed.

2. The Deputy Commissioner/Assistant Commissioner has 15 days to forward the application to the PC/Commissioner. He is supposed to send the application with due verification as needed. But Board doesn't say what is DUE and what is NEEDED.

3. The PC/Commissioner has three weeks to forward the application to the Principal Chief Commissioner/Chief Commissioner.

4. The Principal Chief Commissioner/Chief Commissioner will grant or reject the request for waiver of sealing of bulk cargo with in fifteen days of receipt of the application from the Principal Commissioner/Commissioner of Central Excise.

So, it may take you 51 days to know whether the permission has been granted or not and nobody will be responsible even if you don't get the communication from the Principal Chief Commissioner even after 50 days.

Export is supposed to be a National Priority and here is CBEC prescribing such a complicated procedure for granting exemption from sealing and giving its officers nearly two months time to grant or reject permission. And is the Chief Commissioner's order appealable or should you go to the High Court? What is the great achievement for CBEC in insisting on sealing unsealable goods? Why should the exporter be forced to seal the packages/containers?

It is really ridiculous to even imagine that the department wants 50 days to grant or reject permission. Is the exporter expected to wait for all these days for the great Indian bureaucracy to crawl through its administration? Will the foreign buyer move with the same snail's pace as the Indian Customs? Or will CBEC direct them also to wait for at least three months before something can be shipped from India?

If export is a priority, if facilitation is an avowed policy of the department and if ‘ease of doing business' is not an empty promise, why should the Board complicate matters? This Notification No.42/2001-CENT was issued more than 14 years ago - there was bulk cargo even then. Why should the Board suddenly wake up to create difficulties? When the whole thrust is on elimination of contact points, what is the need to create three contact points; now the exporter is required to follow up his request with the Assistant Commissioner's office, the Commissioner's office and the Chief Commissioner's office and papers don't move by themselves. In each of these offices, he will have to deal with an Inspector, a Superintendent and an Assistant Commissioner.

Export is a national priority - if permission of the Chief Commissioner is required, somebody from the Chief Commissioner's office should go and hand over the permission to the exporter within an hour of the application and ask him, “is there anything else the Chief Commissioner can do for you in facilitating this export?”. Will this ever happen in India?

And at the cost of repetition, why this sealing, why this exemption and why this permission? Whose interests are we trying to protect?

And in case it is absolutely required, why can't the Board identify some of the cargo and give a blanket permission without each exporter having to apply for it?

Notification No. 23/2015-Central Excise (N.T.), Dated: October 30, 2015 and CBEC Circular No. 1011/18/2015-CX, Dated: October 30, 2015

But what about balance of credit? Will CBEC act?

AND why can't the Board give clarification on the balance of education cess lying with the assessee on 1st March 2015 and 1st June 2015? That is really agitating the minds of concerned assessees. This should be an urgent problem for the Board to address.

Can Sardarji Jokes be Banned - SC to Hear

WHO creates Sardarji jokes - the Sardarji themselves:

There was a case in the Supreme Court on Friday - a writ petition to ban websites spreading jokes on sardars/Sikhs.

One of the judges said, "Sikh community is known for their sense of humour and they themselves might object to this petition." The other judge remarked that the Supreme Court was fortunate to have a Sikh judge and suggested that the petition be sent to him, to which the petitioner did not agree. The Judge asked Senior Counsel Abhishek Singhvi (who was in the court) for his opinion. Singhvi said, "Poland would be poor without Polish jokes and India would be poor without Sikh jokes".

Anti Dumping Duty on Float Glass - Provisional assessment

GOVERNMENT had imposed anti dumping duty on import of Clear Float Glass of nominal thickness ranging from 4 mm to 12 mm originating in or exported from Pakistan, Saudi Arabia and UAE by Notification No. 48/2014-Cus(ADD) dated 11.12.2014.

Tariq Glass Industries Limited, Pakistan (exporter) have requested for review in respect of exports of the goods made by them, and the designated authority has recommended provisional assessment of all exports of the goods made by the above party till the completion of the review by it.

So, the Government has ordered that pending the outcome of the said review by the designated authority, the subject goods, when originating in or exported from subject countries through the said exporter namely, M/s Tariq Glass Industries Limited, Pakistan and imported into India, shall be subjected to provisional assessment till the review is completed.

Notification No. 53/2015-Customs (ADD), Dated: October 30, 2015

When ITAT Doubts High Court Decision

IN a recent decision, the ITAT doubted the decision of the High Court on an issue before it. It was actually not a doubt, but a clear opinion different from that of the High Court.

What does the Tribunal do? ITAT held that it is bound by the decision of the High Court and decided the matter accordingly. The Tribunal observed, "the foregoing discussion which represents our humble opinion in the matter, is only to project the view point of Revenue, for consideration of the Hon'ble Court in appropriate proceedings."

This is judicial discipline - maybe the revenue officers should learn.

Hero Munjal is no more

IT was a childhood dream for many of us to have a Hero Bicycle - the Hero behind the Hero Honda success story Brijmohan Lal Munjal died yesterday at the age of 92. He started life selling spare parts of bicycles and went on to build the giant Hero empire.

A real hero indeed.

Macau Customs Chief kills herself

MACAU'S first Woman Customs Chief Lai Man Wa is reported to have committed suicide. She had slash wounds on both her wrists, swallowed sleeping pills and had a plastic bag wrapped over head.

Tariff Value of Gold, Silver Reduced

GOVERNMENT has decreased the Tariff value of gold and silver, and increased those of all other products including Brass Scrap but excluding areca nuts.

The Tariff values as on 15.10.2015 and with effect from 30.10.2015 are as under:

Notification No. 102/2015-Customs (NT), Dated: October 30, 2015

Until Tomorrow with more DDT

Have a nice day.

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