TIOL-DDT 2950
17 10 2016
Monday

ACCORDING to a Commerce Ministry Letter, there are 159 posts of Deputy Commissioners of Customs lying vacant in several SEZs. The total vacancy position as on 1.6.2016 is like this:

Recently the Additional Secretary in the Commerce Ministry discussed this issue with the Chairman, CBEC and followed it up with a letter stating that:

+  There are 7 Central Government SEZs across the country.

+  About 30% of the exports from India are through SEZs and therefore, SEZ have a very significant role in the export from the country.

+  The role of Customs officers and staff in SEZs is critical to the import and export activities carried out in SEZs and enforcement of Customs Act in the SEZs. This has become more critical in view of the recent Gazette Notifications dated 5/8/2016 notifying the offences under the SEZ Act, 2005 and the investigating agencies/authorities competent to investigate into any offence under the SEZ Act, 2005. It is therefore very important that the vacant Customs posts in SEZs are filled up on a priority basis.

+  There is an urgent need to post Deputy Commissioner (Customs) in Noida, SEEPZ, Cochin and Chennai SEZs which are quite sensitive and have higher volume of activities.

He said he would be grateful, if the concerned Customs authorities are directed to initiate necessary action to fill up these vacancies immediately.

This was followed up by a letter from the Commerce Secretary to the Revenue Secretary in which she stated:

+ With about 30 per cent of the exports from India being through SEZs, it would not be appropriate to continue vacancies for a long period. Unfortunately, as the attached vacancies status of customs formations in SEZs indicate, we have a large number of vacancies many at very sensitive locations.

+ This matter has been pursued on regular basis with the Central Board of Excise & Customs (CBEC). However, the pace of filling up of vacancies has been slow and this is a cause of concern.

+ In terms of priority, it is requested that the posts of Deputy Commissioners of Customs in NOIDA SEZ,MEPZ Chennai, FALTASEZ in Kolkata and Cochin SEZ may be prioritised. These SEZs have high volume of activity and are sensitive for a number of reasons.

To this, the CBEC reacted by calling upon the Chief Commissioners to send the names willing and eligible officers latest by 24th October - through proper channel of course.

But why is the CBEC not able to fill these posts? Are there no takers?

CBEC F.No.A.35017/64/2016-Ad. II(Pt.)., Dated: October 14 2016

Rationalization of procedures in handling exporters obligations under EPCG authorizations - CBEC Instructions

AS a part of further rationalizing procedures and avoiding duplication of work based on feedback on outcomes of applying extant procedures, taking into account the conditions prescribed in the Foreign Trade Policy and Customs notifications, the Board reviewed certain aspects of the directions given to field formations in earlier Circulars.

At present the correctness of the installation certificates issued by Chartered Engineers are to be verified on random basis in at least 5% cases through the Central Excise Division. The Board has decided that this verification be restricted to 5% cases.

In the Circular of 2010 it was prescribed that first block EO (export obligation) should be verified in detail and if it has been found satisfactory then EODC issued at end of second block should be accepted without further verification.

Board has decided that Customs authorities need not replicate the verification of export obligation of the first block that is being conducted by Regional Authorities and that the EODCs received under EPCG Scheme in terms of FTP/HBP 2004-09, 2009-14 and 2015-20 be normally accepted without further verification, except in 5% cases where they be verified in detail before acceptance.

Board has directed Commissioners to ensure transparent random selection criteria and selection for 5% check being made at least at Joint/Additional Commissioner level and the relevant exporter being invariably informed, on the date of selection itself, via official email communication that its case is selected for detailed checks. Credibility and transparency may be brought into the Bond cancellation process which may be made speedier. The exporter should not be asked to routinely produce information that can be sourced from the Customs EDI system.

Board has requested the Chief Commissioners to monitor the functioning on a monthly basis and ensure effective implementation.

CBEC Instruction in F.No.605/71/2015-DBK., Dated: October 14 2016

GST - Assam Initiates GST Provisional Registration Number (GSTIN)

ASSAM seems to be leading, not alphabetically alone-it was the first State to ratify the GST Constitution Amendment Bill and now it has become the first State to take initiative in communicating PAN Based GST identification Number(GSTIN).

A Circular issued by the Commissioner of Taxes, Assam states,

a) Goods & Services Tax (GST) will be rolled out from 1st April, 2017.

b) Five Taxation Acts, namely: - VAT, CST, Entry Tax, Luxury Tax and Entertainment Tax, presently administered by the Commissionerate of Taxes, Assam will be subsumed under the GST Act.

c) The tax payers registered under the above five Acts need to be migrated to GST and all the existing registered payers will be allotted PAN based Goods & Services Taxpayers Identification Number (GSTIN) on provisional basis.

d) Under GST regime, registration will not be allowed without a valid PAN.

ln order to facilitate communication of GST registration number to the existing registered entities, the following course of actions has been chalked out:

1. Provisional registration number under GST (GSTIN) is required to be communicated to the existing tax-payers through electronic means i.e. mobile phone and email ID only.

2. All the existing registered tax-payers under the five Acts are required to provide their mobile phone No. and email ID to the Commissionerate through system (TIMS).

3. The Mobile Phone Number & email lD must be furnished on or before 5th November, 2016.

4. lf such mobile No. & emails lD are not furnished on or before 5th November,2016, GST registration number (GSTIN) will not be generated. Moreover, such dealers will be disabled to upload their tax returns and apply for statutory forms under the existing Acts.

5. A template/Screen has been developed. A tax-payer has to follow the steps in sequence to furnish the details.

The Commissioner requests all concerned to follow the steps as advised for a hassle-free communication of GSTIN for eventual transition to GST.

Commissioner of Taxes, Assam Circular No. 9/2016 in CT/COMP-52/2013/73., Dated October 13 2016

GST - VAT Vs CENVAT - Centre Vs States - VAT Officers to protest Today

NOW that GST appears to be an immediate future possibility, the battle lines are being drawn on who should get what.

The IRS Association has said that the State VAT officials may not be allowed to bring distortions in GST to weaken the Centre. A strong sustainable Centre is the need of the hour.

The Central Revenue Associations on an agitation path have been persuaded by CBEC to go slow. The Superintendents' Association says that the CBEC Chairman has promised that their career prospects/manpower would in no way be affected by implementation of GST. He is also reported to have said “ the Hon'ble Finance Minister is with us. ” A meeting was called by the Member (Admn) of CBEC on 13th October with the associations and it seems a request for the minutes of the meeting was turned down on the ground that the trade & state officials as the case maybe use it to advance their cause!

But the All India Confederation of Commercial Taxes Associations (AICCTA) has a different story. They are organising a nation wide mass leave programme today and a dharna in Jantar Mantar, Delhi today where they expect thousands of Commercial Taxes officers from all the States to participate.

AICCTA President Suryanarayana told me,

We all state commercial tax departments are protesting for our legitimate demands as- central Govt through GST Council which is manned by CBEC people are diminishing our existence wrt jurisdiction of dealers, disabling cross empowerment of SGST, CGST and IGST thereby defeating the very principle of GST. This will create an environment of "No ease of doing business in India" affecting the growth of economy. We demand as per the present scenario of existing dealers within state jurisdiction around 70 lakh whereas central Govt has 16-17 lakh; so the vertical split to be in ratio of 4:1 with total cross empowerment across all three constituents of GST. The business should not be put at hardship of interface to both authorities. State taxation people are well versed with the implementation of these complicated Acts more than CBEC. CBEC are well versed with use of powers which is well known to the business houses in India and abroad. We demand ‘one nation one tax one authority' with good federal respect.

After continued meetings with Hon'ble FMs of All States, Empowered committee chairmen since last six years, and now latest with Revenue secretary of GST Council, it is understood that central government wants to push their agenda; hence we are protesting all over India as following Mass casual leave by Commercial tax department employees and a dharna at Jantarmantar in thousands of numbers of employees representing all States at Jantarmantar, Delhi and try to get them heard. If still they are not giving justice, then state government employees may boycott implementation of GST .

The Uttar Pradesh CT department employees and officers' associations have decided to boycott the joint training programme with CBEC.

The AICCTA President and General Secretary Rajani Kanth Sharma have met several State Finance and Commercial Tax Ministers and Union Ministers from States like UP, Rajasthan, Tamil Nadu, Telangana and Andhra Pradesh.

The question is who should get how much of GST? Maybe like the GST Council vote, they should share everything in the ratio of 1:2.

Tariff Value of Gold, Silver and other Items Reduced

GOVERNMENT has decreased the tariff value of gold, silver & Palm oils. There is an increase in the Tariff values of crude soyabean oil. The Tariff values of poppy seeds remains put.

Notification No. 126/2016-CUSTOMS (N.T.)., Dated: October 14, 2016

Until Tomorrow with more DDT

Have a nice day.

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