TIOL-DDT 2610
02 06 2015
Tuesday

FROM DDT 2516 13 01 2015 :

WHAT do you do when you forget to claim an exemption notification in a Bill of Entry filed by you and self assessed, duty paid and goods cleared? How can you rectify this situation? The Department may not agree to a re-assessment and you cannot go in appeal against your own assessment.

In a recent meeting of the Trade Facilitation Committee in JN Customs, a Customs Broker raised an issue that after introduction of Self Assessment, the Appellate Commissioner holds that Appeal can be entertained only if Re-assessment or order of assessment is issued by the Department whereas the Appraising Group takes a view that assessment done, whether self or not, is an assessment order as was done prior to the introduction of Self Assessment. As of now, in most cases of this nature Commissioner (Appeal) is remanding the matter.

He informed Commissioner that re-assessment/amendment u/s149 of the Customs Act is not allowed in cases where importer by mistake forgot to claim notification benefit for which he was entitled.

Commissioner informed the members that JNCH has already taken up this issue with Board.

In the meantime, the Mumbai Bench of the CESTAT in a case of an importer from Nagpur, held that if the Customs duty was paid in excess under a self assessment of bill of entry and borne by the appellant, for claiming of refund of excess paid duty, the appellant was not required to challenge the assessment of bill of entry . The matter was remanded to ascertain unjust enrichment. ( Suryalaxmi Cotton Mills vs Commissioner of Central Excise, Nagpur - 2014-TIOL-3015-CESTAT-MUM ) In this case, the importer did not claim CVD exemption to the tune of Rs. 1.34 crores and the department rejected the refund claim on the ground that the assessment order was not challenged. It was self assessment - how do you challenge self-assessment? Though the Department has no answer, it has no qualms about rejecting the refund claim. Mumbai Customs Commissioner says, he has referred the matter to the Board. Obviously, Board does not clarify things that easily.

The issue cropped up again last week in the Trade Facilitation Meeting of JN Customs, Mumbai. The above CESTAT order was brought to the Commissioner's notice.

The Commissioner replied,

No decision has been taken by the concerned Commissionerate on the issue as to whether department would file an appeal against the said Tribunal Order. The matter will be examined after any communication is received from the concerned Commissionerate. If the said Order is accepted by the department, a reference will be made to the Board before issuance of suitable instruction to Refund Section .

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IN the Trade meeting in Mumbai Customs last week, a Customs Broker pointed out that when they are filing Ex-Bond bill of entry under duty free scrips and interest on duty is payable, same is collected under manual challan with interest @ 18%. However when the same bill of entry is filed under EDI, rate of interest on duty is charged @ 15%. He requested that the issue regarding two different rates of interest may be clarified.

The Commissioner clarified, " as per the Customs Notification no. 18/2003 (NT) dated 01.03.2003, the rate of interest chargeable is 15% for the purpose of Section 61 of the CA'62 and accordingly, a suitable instruction will be given to the Cash section. "

Six New Technical Members for CESTAT

IT is finally out and official - the order appointing six technical members to the CESTAT has been released by the Ministry. There was a small error in the flash carried by us on Friday. We carried the name of Mr. KM Ravichandran instead of Mr. B. Ravichandran. But as mentioned in the flash, it was a likely news. We carried it on the basis of information received from reliable sources. Any way we regret the lapse.

The following are the new Members appointed with their places of posting.

1. Mr. Ashok Kumar Arya holds LL.M and MBA degrees and has vast experience in the Department in Mumbai Customs, Ahmedabad Central Excise, DRI, Directorate of Enforcement, DG, Audit, NACEN and RajyaSabha Secretariat. He would have retired from the Department in September 2015. Now, he will be in CESTAT till September 2017.

2. Mr.B.Ravichandran has varied experience in Central Excise, Service Tax, Customs and Vigilance. He has headed important offices like Mumbai Service Tax and NahvaSheva Customs. He also has experience as a Commissioner (Appeals). He is now a Principal Commissioner in Hyderabad. He is a post graduate in Science and a graduate in Law.

3. Mr.Raju holds AMIE, CFA, PGDM and LLB as his educational qualifications. He has rich experience as DR in the CESTAT. Now he is elevated from the Bar to the Bench. Recently he was promoted as Principal Commissioner. He will have a long service of 9 years in CESTAT.

4. Mr. Mathew will perhaps be the youngest Technical Member ever to join CESTAT. He is just 51 which means he can be in CESTAT for 11 years. Mr. Mathew is an MBA and a sought after speaker in many training and development programmes in nationally reputed institutions. He also has experience in Customs, DRI, CVC and was the Development Commissioner of Cochin SEZ for nearly five years. He is at present ADG, Audit at Hyderabad.

5. Mr. PM Saleem retired from the Department six months ago. He will have a short duration of one and half year in the Tribunal. Mr.Saleem is a Law Graduate with an MBA. He also had experience as a Departmental Representative in the CESTAT apart from various field posts in Customs, Central Excise. He also worked in the Board and in Vigilance. Mr.Saleem would be perhaps the first among the newly appointed Members to join. He is to preside over a Single Member Bench in Ahmedabad on 05.06.2015.

6. Mr. Ramesh Kumar Singla, is the senior-most IRS officer among the newly appointed members. He retired two months ago as Chief Commissioner and DG, Safeguards. Mr.Singla is a law graduate and had a long stint as Joint CDR in the CESTAT. He will have slightly less than two years in the Bench.

Working in CESTAT as DR seems to have heavily impressed the selection committee.

We congratulate the new Members and wish them all the best in the Bench.

Now that all the vacancies in the CESTAT seem to have been filled, the Revenue Department should ensure that adequate funds are provided to the CESTAT for starting new Benches and for better facilities in the existing benches.

MoF, Department of Revenue Office Order in F.No.A.12026/03/2013-Ad.IC (CESTAT)(II)., Dated May 28 2015.

Anti Dumping Duty on Poly Vinyl Chloride Paste Resin

PROVISIONAL Anti Dumping Duty on Poly Vinyl Chloride Paste Resin originating in, or exported from, People's Republic of China, Japan, Republic of Korea, Malaysia, Russia, Taiwan and Thailand, was imposed by Notification No. 77/2010-Customs, dated 26th July 2010. This notification clearly stated that the "anti-dumping duty imposed under this notification shall be effective upto and inclusive of the 25th January 2011"

After the death of the notification on 26 th January 2011, Government revalidated it by Notification No. 66/2011-Cus, dated 26 th July 2011, but with effect from 26th July 2010.

This would have expired on 26 th July 2015. But this time they woke up well in time and extended it till 25th day of July, 2016.

Board should be congratulated for not levying an anti dumping duty illegally with retrospective effect. Let us hope the Board makes this a healthy precedent and continues with it.

Notification No. 25/2015-Customs (ADD), Dated: June 01, 2015

Anti Dumping Duty on Poly Vinyl Chloride Paste Resin from EU- extended

THE Anti Dumping Duty on Poly Vinyl Chloride Paste Resin also called as Emulsion PVC Resin, originating in, or exported from European Union, was imposed by Notification No. 104/2004-Customs and was extended by notification No. 115/2009-Customs till 6.7.2010. Government then imposed the anti dumping Duty on this product for another five years by Notification No. 70/2010 -Customs, dated the 25th June, 2010. DDT congratulated the Government then for bringing in this notification well ahead of the expiry date.

DDT is happy to congratulate the Government again. This notification would have expired on 25.06.2015, and the Government has now extended it till 24th day of June, 2016 - well before the notification lapsed.

Notification No. 26/2015-Customs (ADD), Dated: June 01, 2015

Anti Dumping Duty on Acrylic Fibre - Re imposed

ANTI Dumping Duty on Acrylic Fibre originating in, or exported from, Korea RP and Thailand was imposed by Notification No. 106/2002-Customs, dated the 9th October, 2002. This anti dumping duty was extended till 8th October, 2008 vide Notification No. 113/2007-Customs, dated 16th November, 2007.

8th October 2008 went by silently and the duty was not extended and Notification No. 106/2002 had a natural death.

The same duty was re imposed by Notification No. 123/2008-Cus dated 20th November, 2008. That means during the period, 9th October to 19th November, there was no anti dumping duty on this product.!

And the re-imposing notification expired on 19 th November 2013, but then they acted well within time and extended the validity till 19 th November 2014. This time they forgot to extend it.

Now they have re-imposed the duty for another five years, but thankfully no retrospective effect - Thank Board!

Notification No. 27/2015-Customs (ADD), Dated: June 01, 2015

Former CBDT Chief likely to be new CVC

IT is reported that the former CBDT Chairman Mr. KV Chowdary is tipped to be the new Central Vigilance Commissioner. If it comes through, he will not only be the first IRS officer, but also the first non-IAS officer to be the CVC. Some years ago I suggested to a Chairman of CBEC (who was known for his impeccable integrity) that he should apply for the post of CVC. He told me, "no no, that is for the IAS"

Until Tomorrow with more DDT

Have a nice day.

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