SIGN IN SUBSCRIBE

News Update

Cus - Export of non-basmati rice - Notification 20/2023 insofar as it denies the benefit of the transitional arrangement as contained in para-1.05 of the FTP 2023, is bad in law: HCCus - Refund of SAD - 102/2007-Cus - Areca Nut and Supari are one and the same - Objections with regard to name, nature and status of importer or buyers or the end use of goods purchased by them etc. are extraneous: HCCX - Interest on Refund - Since wrong order annexed by petitioner in paper book, Bench is unable to proceed further - Petition is dismissed with liberty to file a fresh one: HCGST - No E-way bill - When petitioner imports machinery and after Customs clearance, transports same to his own factory, it cannot be said that such a transportation would fall within the definition of term 'supply' - Penalty imposable under second limb of s.129(1)(a): HCGST - Fix responsibility on officers who allowed BG to lapse - Petitioner not justified in not renewing BG - Cost of Rs.15 lacs imposed, to be paid to PM Cares Fund: HCGST - Since the parties agree that petition can be disposed of on the basis of records available before Appellate Authority, petitioner is directed to enclose all documents filed before Appellate Authority in a compilation, in form of a paper book: HCWrong RoadST - Whether any service is used for personal consumption or not is certainly question of fact and being question of fact, no substantial question of law arises: HCGovt proposes to amend Geographical Indication of Goods Rules; Draft issued for feedbackST - If what has been paid as tax is without authority of law, Revenue should refund the same - Denial of credit would result in the whole exercise being tax neutral: HCWarehousing Authority notifies several agri goods to be stored in only registered warehousesST - Even if the petitioner may have a case on merits, it is best left to be decided by the Appellate Authority under the hierarchy prescribed under the FA, 1994: HCUS FDA okays Eli Lilly Alzheimer’s drugGST - Petitioner challenges jurisdiction of assessing officer - Petitioner is entitled to file an appeal u/s 107 by availing an alternate efficacious remedy: HCFive from Telangana killed in car accident on Pune-Solapur HighwayGST - Existence of an alternative remedy is a material consideration but not a bar to the exercise of jurisdiction: HCHush money case against Donald Trump - Sentencing deferred to Sept 18GST - It is open to a trader to take goods by whichever route he opts, unless the law otherwise requires, destination point being intact: HCDeadly hurricane Beryl smashes properties in JamaicaGST - Conclusion that taxable person is providing a service to supplier while taking the benefit of a discount by facilitating an increase in the volume of sales of such supplier is ex facie erroneous and contrary to the fundamental tenets of GST law: HCIsrael claims 900 militants killed in Rafah since May monthGST - Order expressly records that personal hearing notice was returned with endorsement 'no such person at address' - Since petitioner has shifted to a new premises, it is just and necessary to provide an opportunity to contest demand: HC116 die in stampede at UP ’Satsang’I-T- Application for revision of order dismissed in limine on grounds of delay; case remanded for re-consideration: HCWe are deepening economic ties with India, says US officialI-T- As per Section 119(2)(b), power to condone applications relate to claims for amount exceeding Rs 50 lakhs are to be considered by CBDT; however it is impermissible for CBDT to pass order on merits: HC8 Dutch engineers build world’s longest bicycle - 180 feet, 11 inchesI-T- Additions framed u/s 68 for unexplained income & u/s 69 for unexplained expenditure not tenable where complete transactional details are furnished & not doubted: HCRailways earns Rs 14798 Crore from Freight loading in June monthI-T- Delay in filing ITR is per se insufficient reason to estimate assessee's profit @15% on turnover, more so where audited financial report is filed in timely manner: ITATMoD inks MoU to set up testing facilities in Unmanned Aerial System in TN Defence Industrial CorridorI-T- For invoking section 69A, assessee should be found to be owner of any money, bullion, jewellery or other valuable article & which is not recorded in the books of account: ITATGovt proposes Guidelines for ethical approach to Coal MiningI-T- TDS credit can be allowed based on AIS, where details pertaining to TDS, advance tax & other payments are reflected in Form 26AS: ITATVaishnaw to inaugurate Global IndiaAI Summit 2024I-T- Lending money with the primary intention of earning interest can be considered a business activity, but nature and manner of lending, as well as the frequency, should be taken into account: ITAT
 
Clearance of Gift and Personal Use parcels imported through Courier mode

APRIL 25, 2017

By Ashwani Kumar, Consultant

PRIOR to the Finance Act, 2017 all bonafide gift parcels and goods for personal use imported through courier mode were being classified as per the description under applicable tariff headings. However, due to the amendment of Note 4(c) of Chapter 98, bonafide gifts and other goods for personal use imported through Courier mode will now be classified under Heading 9804.

The duty rates before the notification of the Finance Act 2017 stood as under:

(i) For bonafide gifts upto twenty thousand rupees (Rs. 20,000/- )(FOB) - Nil duty vide Notification 171/93-Cus dated 16.09.1993, as amended.

(ii) For bonafide gifts of value beyond Rs. 20,000 at rates as applicable under the respective Chapter heading. [Customs duty is charged on the full value of such goods if the value exceeds Rs. 20,000 even if they are declared as gifts].

(iii) For goods imported of personal use (including online purchase) at rates as applicable under the respective Chapter heading.

Since bonafide gifts and other goods for personal use, imported through Courier mode, will now be classified under Heading 9804, consequent to the amendment in the Chapter notes of Chapter 98, the effect of duty will be as under:-

1. Bonafide gifts:

(i) Bonafide gifts upto value Rs. 20,000 /- (FOB) – will be exempted from duty under Notification 171/93-Cus dated 16.09.1993 as amended by Not. No. 13/2016- Cus. dated 01.03.2016.

(ii) Bonafide gifts beyond Rs. 20,000 classified under CTH 9804, will attract duty at 35% BCD + 3% cess + 4% SAD (41.492%) plus it will be cleared after adjudication for Policy violation.

The above point (ii) is contrary to the provisions of the FTP. It may be mentioned that there is no upper limit for goods which can be imported as bonafide gifts where such goods are freely importable under ITC (HS) on account of the provisions under Para 2.25 of the Foreign Trade Policy 2015 -2020 which reads as under:

2.25 Import of Gifts

Import of gifts shall be ‘free' where such goods are otherwise freely importable under ITC (HS). In other cases, such imports shall be permitted against an authorisation issued by DGFT.

2. Import of goods for personal use consequent to amendment:

(iii) Goods intended for personal use or imported for personal use (including online purchase) upto a value of two thousand rupees (Rs. 2000 /-)[CIF], may be cleared without a licence on payment of duty at 10% BCD + 3% Cess + 4% SAD (14.712%) [Refer to S. No. 517 of Notification 12/2012- Cus. dated 17.03.2012]

(iv) Goods imported for personal use above Rs. 2000/- (CIF) not prohibited and exempted from any prohibition in respect of the imports thereof under FTO, 1993 may be cleared after adjudication for policy violation under CTH 9804 and on payment of merit rate of duty as applicable under 9804 at 35% BCD + 3% cess + 4% SAD (41.492%).

The above position is again in contradiction to the provisions of Foreign Trade (Exemption from application of Rules in certain cases) Order 1993 (FTO, 1993 in short). It is noteworthy that there is no value limit on goods imported for personal use except consumer electronic goods as seen from the DGFT Notification No. 22/2015 -2020 dated 12.08.2016, where such goods are freely importable under ITC (HS).

In terms of DGFT Notification No. 22/ 2015-2020 dated 12th August, 2016, the value of consumer electronic items [mentioned at Clause 3(1)(i)(h) of the FTO, 1993] has been enhanced from Rs.2000(CIF) to Rs.50000 (CIF). The explanation given at the end of the notification reads as:

Effect of Notification: C.I.F. value of import of consumer electronic items at any one time by any person through post or otherwise for personal use is enhanced to Rs. 50,000.

Thus, it is abundantly clear that as far as restriction on goods is concerned, it is applicable only for goods mentioned at Clause 3(1)(i)(a to h) of the FTO, 1993 and does not apply to goods imported by any person for his personal use and that there is no value limit on goods imported for personal use except Consumer electronic goods as per the DGFT notification 22/2015-2020 referred to.

The CBEC and DGFT websites still indicate the Policy and condition/value limits for import under Heading 9804 as under:

Restricted, Subject to value limit of Rs. 2000 (CIF) and other conditions as specified in clause 3(1), (i) of Foreign Trade (Exemption from Application of Rules in Certain Cases) Order, 1993.

In view of the above discrepancies and ambiguities pointed out, CBEC and DGFT need to make necessary amendments in CHP 98 w.r.t. the Policy, conditions and value limits and issue Circular for the benefit of trade and field formations so as to have uniformity at all the stations where Courier and postal packages are cleared. Clarification should also be given as to whether printed books gifted or imported for personal use (including online purchase) would require IEC for claiming duty exemption under Sr. No 272 of Notification 12/2012 Cus dated 17/03/2012 as amended.

(The views expressed are strictly personal.)

(DISCLAIMER : The views expressed are strictly of the author and Taxindiaonline.com doesn't necessarily subscribe to the same. Taxindiaonline.com Pvt. Ltd. is not responsible or liable for any loss or damage caused to anyone due to any interpretation, error, omission in the articles being hosted on the site)

POST YOUR COMMENTS
   

TIOL Tube Latest

TIOL Tube
India's Path to Becoming a Superpower: An Interview with Pratap Singh

TOP NEWS


AR not Afar by SK Rahman

VISION 360



Shri Ram Nath Kovind, Hon'ble 14th President of India, addressing the gathering at TIOL Special Awards event.

TII LATEST

TIOLCORPLAWS LATEST