MARCH 17, 2020

By Narendra Singhvi, Joint Partner, Laskshmikumaran & Sridharan & Anshul Kumat, Consultant

AS a need of the modern-day practice of paperless working procedures and the massive digitization of the processes, CBIC has initiated the 'TURANT Customs' scheme, which includes the introduction of faceless e-assessment and an intelligent system 'e-SANCHIT', which will automate the clearance process without any interface of officers in normal circumstances.

The faceless e-assessment has been introduced to maintain the harmony in the assessment proceedings and to fasten up the process by reducing the physical interface between the assesse and the customs officials and utilizing the available resources in a more effective and efficient manner. The process will help in automating the core feature as served by the custom department i.e. providing clearances to the imported goods for consumption.

With the new system being in force, the bills of entry would be classified in two broad categories i.e. facilitated and non-facilitated bills of entry. The facilitated bills of entry are not subjected to assessment/ examination, and are routed directly to 'out of charge officer' for granting clearance. In case of non-facilitated bills of entry, the system would indicate whether a bill of entry has to be subjected to either assessment or examination or both.

The assessment function in the automated system can be divided into different groups based on the Customs tariff classification thereby delegating the work in such a way that the sector specific specialization could be achieved. The process would be automated with a Risk Management System in which the decisions would be taken on the basis of profiling and evaluation of risk with the help of system based approach.

The existing Commissionerates would be restructured in a way to support the implementation of a faceless system in which the Commissionerates, having a limited jurisdiction hitherto, will now have the jurisdiction across the country so that the workload balance could be maintained and the process could be made easy. This will thereby reduce the transaction cost and uncertainty amongst the trade. There would only be two categories of Commissionerates i.e. National Assessment Commissionerates (NACs), which will be responsible for carrying out the assessment proceeding, and Jurisdictional Port Commissionerates (JPCs), which would be responsible for the physical examination of the goods if the NACs find any discrepancies in the documents and Bill of Entry as filed by the assessee. The NACs would comprise of various Faceless Assessment Groups (FAGs) that will include officers drawn from different Customs locations.

The whole process i.e. from filing of bill of entry for getting the goods cleared for home consumption to the appellate proceedings would be conducted in electronic manner in this new regime of e-assessment proceedings. The JPCs shall be setting up TURANT Suvidha Kendra to do the various tasks electronically like accepting of bonds and bank guarantees, etc.

The FAGs would be solely responsible for the assessment proceedings and if the assessee does not agree with the orders passed, the appellate proceedings are also to be carried on electronically through video conferencing or any other reliable technological means. All the proceedings in the process of e-assessment would be conducted electronically. The facility of personal hearing is also available to the assessees, unlike Income Tax Act as pointed out by Hon'ble Madras High Court in Salem Sree Ramavilas Chit Company Pvt. Ltd v. DCIT, - 2020-TIOL-401-HC-MAD-IT.

In this regard, the CBIC has issued a concept paper on faceless e-assessment calling for suggestions, views and comments from the stakeholders. CBIC is yet to lay down the standards, procedures and processes for the effective functioning of the FAGs as well as the constitution of the both NACs and JPCs in order to achieve the required objective.

[The views expressed are strictly personal]