06 10 2015
Tuesday
A smuggler walks through the green channel of an International Airport in India, but is caught by the Customs with a huge quantity of gold. He is a declared smuggler. Can he go to the Settlement Commission and get an immunity from prosecution?
This is what exactly happened in a case reported by us recently. (2015-TIOL-2010-HC-DEL-CUS).
A passenger, as part of his baggage, brought into India 6452.600 gms of gold on 16.06.2013 while arriving at the Indira Gandhi International Airport, Delhi from Dubai. While he was trying to cross the green channel, a Customs Officer intercepted him and on being asked by the Customs Officer as to whether he carried any dutiable goods, he replied in the negative. On examination, it was found that he was carrying gold wrapped in brown tape which was tied to his waist by a black belt.
He made an application before the Settlement Commission, which settled the case, against which the Revenue made a successful writ petition before the Delhi High Court.
The High Court held that the Settlement Commission had no jurisdiction to settle cases covered by Section 123 of the Customs Act and Gold was specifically covered.
The CBEC has noticed this High Court order and has clarified to the field that in view of the said order of the Delhi High Court, the Settlement Commission has no jurisdiction to entertain matters in relation to the goods specified under section 123 of the Customs Act, 1962 which include Gold.
Board has directed, "In case the settlement Commission admits any such matter for settlement, the jurisdictional field formation should challenge the same in High Court by way of Writ, at the stage of admission."
CBEC Instruction in F.No.275/46/2015-CX.8A., Dated: October 01, 2015
Service Tax 0n GTA - CBEC Clarifies
CBEC explains:
Goods Transport Agency (GTA) has been defined to mean any person who provides service to a person in relation to transport of goods by road and issues consignment note, by whatever name called. The service provided is a composite service which may include various ancillary services such as loading/ unloading, packing/unpacking, transshipment, temporary storage etc., which are provided in the course of transportation of goods by road. These ancillary services may be provided by GTA himself or may be sub-contracted by the GTA. In either case, for the service provided, GTA issues a consignment note and the invoice issued by the GTA for providing the said service includes the value of ancillary services provided in the course of transportation of goods by road. These services are not provided as independent activities but are the means for successful provision of the principal service, namely, the transportation of goods by road .
 A single composite service need not be broken into its components and considered as constituting separate services, if it is provided as such in the ordinary course of business. Thus, a composite service, even if it consists of more than one service, should be treated as a single service based on the main or principal service. While taking a view, both the form and substance of the transaction are to be taken into account. The guiding principle is to identify the essential features of the transaction. The interpretation of specified descriptions of services in such cases shall be based on the principle of interpretation enumerated in section 66 F of the Finance Act, 1994. Thus, if ancillary services are provided in the course of transportation of goods by road and the charges for such services are included in the invoice issued by the GTA, and not by any other person, such services would form part of GTA service and, therefore, the abatement of 70%, presently applicable to GTA service, would be available on it.
Board also clarifies that transportation of goods by road by a GTA, in cases where GTA undertakes to reach/deliver the goods at destination within a stipulated time, should be considered as ‘services of goods transport agency in relation to transportation of goods' for the purpose of notification No. 26/2012-ST dated 20.06.2012, serial number 7, so long as (a) the entire transportation of goods is by road; and (b) the GTA issues a consignment note, by whatever name called .
Board wants pending disputes to be decided expeditiously.
Wasn't this the position always? Maybe the Board had to come out with the clarification to pacify the agitated truckers who were on strike.
While the Truckers demand scrapping of toll plazas on National Highways and a one-time payment of the toll, they have other grievances on VAT, TDS and Service Tax. And of course the unaccounted tax all through the Roads - bribes to various officers.
CBEC Circular No.186/5/2015-ST, Dated: October 05, 2015
CESTAT Bench Officially inaugurated at Allahabad
THE Allahabad Bench of the CESTAT was officially inaugurated by Mr. Anil Choudhary, Hon'ble Member (J) at the Old Heritage Building at 38, MG Road, Civil Lines, Allahabad on 1st October 2015.
The function was attended by Messrs PK Bansal and Mahaveer Prasad, ITAT Members, Feroz Khan, PC, Income Tax; Sanjay Rathi, Commissioner, Central Excise; Mohan Kumar, Registrar, CESTAT and eminent senior lawyers of Allahabad.
When will the Hyderabad and Chandigarh Benches be inaugurated?
CBEC Hosts Asia Europe Meeting (ASEM) of Customs Chiefs
CENTRAL Board of Excise and Customs, Ministry of Finance is hosting the 11th Asia Europe Meeting (ASEM) of the Directors General-Commissioners of Customs at the Hotel Cidade deGoa in Goa on 8th and 9th October, 2015.
India is hosting the Head of Customs administrations meeting for the first time since joining, the ASEM forum in 2008. Heads of Customs administrations and delegates from 53 Member States of ASEM 30 from Asia, 21 from Europe and two international organizations namely the European Commission and the ASEAN Secretariat are expected to attend. Mr. Kunio Mikuriya,Secretary General of the 180 member strong World Customs Organization (WCO) shall be present at the event as an observer.
Established in 1996 ASEM aims to strengthen the Asia-Europe relations and in this direction provides opportunities for dialogues and cooperation between countries of Asia and Europe in wide areas covering politics, economy, culture and others. Cooperation in Customs matters between Asia and Europe is an important element of the ASEM framework and the Directors General-Commissioners of Customs of ASEM meet biennially to discuss current developments and priorities of Customs work.
The two-day meeting will focus on the five main priorities of ASEM viz. Trade Facilitation and Supply Chain Security; Combating Infringement on IPR; Protection of Society and Environment; Involving Business; and Communication and Visibility.
Indian Customs Chief Najib Shah will chair the meeting.
Until Tomorrow with more DDT
Have a nice day.
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