TIOL-DDT 2557
13 03 2015
Friday

IN Circular No. 1/2015-Cus dated 12.01.2015, the CBEC stated, "Simplification of Customs procedures for enhanced ease of doing business and trade facilitation is the top priority of the Government. One of the identified areas for such simplification is reduction in the number of mandatory documents required by Customs for import and export of goods."

So, the Board has decided that as a measure of simplification, in case an importer/exporter submits a commercial invoice cum packing list that contain the required data fields/ information in addition to the details in a commercial invoice, a separate packing list should not be insisted upon by Customs. However, the option should be given to the importer/exporter to do so.

Taking this further, the DGFT has issued a Notification yesterday stipulating that only three documents each would be mandatory for exports and imports.

Exports:

1. Bill of Lading/Airway Bill.

2. Commercial Invoice cum Packing List. (Separate Commercial Invoice and Packing List would also be accepted.)

3. Shipping Bill/Bill of Export.

Imports:

1. Bill of Lading/Airway Bill.

2. Commercial Invoice cum Packing List. (Separate Commercial Invoice and Packing List would also be accepted.)

3. Bill of Entry.

However,

For export or import of specific goods or category of goods, which are subject to any restrictions/policy conditions or require NOC or product specific compliances under any statute, the regulatory authority concerned may notify additional documents for purposes of export or import.

In specific cases of export or import, the regulatory authority concerned may electronically or in writing seek additional documents or information, as deemed necessary to ensure legal compliance.

DGFT Notification No. 114/(RE-2013)/2009-2014, Dated: March 12, 2015

CE - Classification of Printed Advertising Material - Supreme Court Settles the dispute after 15 years

THE question before the Supreme Court was classification of what the manufacturer described as "printed trade advertising material". The goods in question consist of sheets of vinyl printed on them, generally, a picture, and a slogan. The goods are used to advertise material. It was explained that such a sheet is placed in a frame made of metal on three sides, the sheet being placed in the open front. It is illuminated from behind by a light source in the frame. Such displays are found where the public congregate, as in bus stops and railway stations.

The Commissioner classified it under Heading 94.05 - "Illuminated signs, illuminated name plates and the like, having a permanently fixed light source, and parts thereof not elsewhere specified or included."

The assessee claimed classification under Heading 49.01, for printed books, newspapers, pictures, and other products of the printing industry; manuscript, typescript and plans.

The Tribunal agreed with the assessee and allowed its appeal in the year 2000. The Supreme Court condoned the delay and admitted the Revenue Appeal in 2001 and on Monday after fourteen years, the Supreme Court dismissed the Revenue Appeal, agreeing with the Tribunal.

Fortunately in this case, there was no pre-deposit and so the assessee has no stakes.

From Monday, the Supreme Court has a Special Tax Bench sitting every day. This was one of the cases decided on the first day by the new Tax Bench. With an exclusive Tax Bench, we can hope to have some of the old cases being disposed of.

Perhaps the Supreme Court should consider taking up some of the latest cases also. After all it is in nobody's interest if a tax issue is decided after 10 to 15 years. Maybe the Cause List should contain one old case and one new case alternately. All the cases listed for today are appeals of 2003.

Please see 2015-TIOL-14-SC-CX

CBI wants SPs - from IRS

CBEC has written to all Chief Commissioners that CBI is looking for officers other than IPS to be taken on deputation to CBI as Superintendents of Police. The CBI says that it would gainfully utilise the expertise and experience of officers for investigation of complex cases and after their repatriation, the experience gained by them in CBI would benefit the parent organisation. As they say in GST, win-win.

Joint Commissioners and Deputy Commissioners with 5 years experience are eligible. CBI wants only officers with impeccable integrity.

CBEC F. No.A.35017/24/2015-Ad.II., Dated: March 11, 2015

Link Pay to Productivity - 14th Finance Commission

THE 14th Finance Commission in its recent report states,

Wages and salaries constitute a significant portion of the committed liabilities of both the Union and States. Periodic revisions based on the recommendations of the Pay Commissions of the Union, with States following suit, have contributed to rising revenue expenditure. For States in particular, the fiscal impact of a pay revision is severe, as the share of salary expenditure in their total revenue expenditure is substantially larger than in the case of the Union. Arrears in pay and bi-annual releases of Dearness Allowance compound the burden .

An internal study by the Commission brought out the fact that the Union Government's expenditure on pay and allowances (Excluding productivity linked bonus/ad-hoc bonus, honorarium and encashment of earned leave, and travel allowances.) more than doubled for the period 2007-08 to 2012-13, from Rs. 46,230 crore to Rs. 1,08,071 crore (If salary of defence services is included, the corresponding figures will be Rs. 73,073 crore and Rs.1,84,711crore). This increase can be largely attributed to the implementation of the Sixth Central Pay Commission recommendations, evident from the per employee annual salary (excluding defence salary) increasing from Rs. 1,45,722 to Rs.3,25,820 over this period. Moreover, the share of expenditure on pay and allowances in revenue expenditure (net of interest payment, pensions and grants-in-aid) increased from 11.8 per cent in 2007-08 to 13.1 per cent in 2012-13. The incidence of salary expenditure is much higher in the States than in the Union. In 2012-13, the share of expenditure on pays and allowances of all employees in the revenue expenditure (net of interest payments and pensions) among the States ranged from 28.9 per cent to 79.1 per cent. Per employee (for regular employees) salary in 2012-13 across States ranged between Rs. 2,12,854 and Rs. 5,49,345. Thus, the impact of revisions in pay scales on fiscal positions is uniformly significant, though it varies widely across States.

The Commission expressed its concern on the likely impact on overall budgetary resources, particularly of the States, once the recommendations of the Seventh Central Pay Commission are announced and adopted by the Union Government.

The Commission drew attention to the importance of increasing the productivity of government employees as a part of improving outputs, outcomes and overall quality of services relatable to public expenditures. The Seventh Central Pay Commission, has, inter alia, been tasked with making recommendations on this aspect. Earlier Pay Commissions had also made several recommendations to enhance productivity and improve public administration. Productivity per employee can be raised through the application of technology in public service delivery and in public assets created. Raising the skills of employees through training and capacity building also has a positive impact on productivity. The use of appropriate technology and associated skill development require incentives for employees to raise their individual productivities. A Pay Commission's first task, therefore, would be to identify the right mix of technology and skills for different categories of employees. The next step would be to design suitable financial incentives linked to measurable performance.

The Commission recommended linking of pay with productivity, with a simultaneous focus on technology, skills and incentives . It further recommended that Pay Commissions be designated as 'Pay and Productivity Commissions', with a clear mandate to recommend measures to improve 'productivity of an employee', in conjunction with pay revisions . The Commission urged that, in future, additional remuneration be linked to increase in productivity .

Source: Paras 17.23 to 17.29 of the Report of the 14 th Finance Commission

SEZ - BOA Cancels Approval of 56 SEZs

THE Board of Approval (BoA) for Special Economic Zones (SEZ) in its recent meeting has decided to cancel the formal approval/notification, as the case may be, in 56 cases. The approval is subject to the DC furnishing a certificate in the prescribed format certifying that the developer has not availed any tax/duty benefits including Service Tax Exemptions, if any, under SEZ Act/Rules, or has refunded any such benefits availed by it.

These include 6 units in Madhya Pradesh, 4 in Gujarat, and 20 in the erstwhile State of Andhra Pradesh.

This action will release huge amounts of land allotted to these SEZs. These are SEZs approved in the years 2006 to 2009.

Until Monday with more DDT

Have a nice weekend.

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