Page 103 - DHC Budget Book 2021-22 Final
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or tribunal, or the period for seeking information from an overseas authority through a legal process, shall be excluded.
Explanation has been proposed to be inserted clarifying that the aforesaid provisions shall not apply to any such proceedings initiated before the date on which the Finance Bill, 2021 is enacted.
Comment:
Under the Customs Act, 1962, the time limit of 2 years have been prescribed as the normal period of limitation for issuance of SCN for non-payment of duty, for reasons other than fraud, and an extended period of five years for cases involving suppression, misstatement
or collusion. However, there was no provision for prescribing time limit for completion of departmental inquiries or investigations which results into issuance of SCN.
This change is expected to ensure timely completion of inquiries/ investigation and collection of the duty not levied / short levied by issuance of SCN within time limit prescribed under the Act.
9.1.4 Confiscation of goods in cases of wrongful claim of remission or refund on exports
Clause (ja) has been proposed to be inserted
in Sec. 113, to provide for confiscation of
goods entered for exportation, in respect of which a wrongful claim of remission or refund of any duty or tax or levy has been made in contravention of the provisions of this Act or any other law for the time being in force.
Comment:
The above amendment appears to correct the inconsistency between the Customs Law and ‘any other law’ for the time being in force so far as the application of provision for confiscation of goods under Customs Law is concerned.
In the case of Department of Customs vs. Sharad Gandhi [2019-VIL-07-SC-CU], Hon’ble Supreme Court has vividly discussed the interplay of the enactments under Customs Act, 1962 and Antiquities and Art Treasures Act, 1972 and it was held that the words “any other law” in Section 30 of the said Antiquities and Art Treasures Act, 1972 would not include the Customs Act, 1962.
9.1.5 Imposition of Penalty in cases of wrongful claim of remission or refund on exports
Sec. 114AC has been proposed to be introduced for imposing penalty in cases where input tax credit under GST has been availed on the basis of any fraudulent invoice, is utilized for payment of tax on exports for which refund has been claimed. The proposed penalty shall not exceed five times the amount of refund claimed.
Comment:
The GST refunds claimed on the basis of fake/ bogus ITC invoices has been a major issue affecting the CG as well as the trade and industry. To curb the said menace, CBIC has also released SOP for verification of GST refunds.
The above amendments have been proposed
in line with the objective of the CG to impose stringent action and curb such false refunds. However, it is also interesting to note that similar provisions already exists under the GST Law. Thus, the legislature seems to have introduced multiple swords for tackling the same demon. This action of the legislature may be seen as a departure from the scope of the Customs law and may be subject to challenge before the Courts inter alia on the ground of jurisdiction.
9.1.6 Other miscellaneous amendments
Proposed changes in timelines for filing of Bill of Entry:
Clause (3) of Sec. 46 has been proposed to be amended to provide for filing of Bill of Entry before the end of the preceding day (including holiday) from the day of arrival of aircraft or vessel or vehicle carrying the goods. [Earlier, the time limit for filing of Bill of Entry was given until the end of next day (excluding holidays) from the day of arrival of goods.]
CBIC would also be empowered to notify time limit for presentation of Bill of Entry in certain cases, which shall not be later than the end of the day of arrival of the aircraft or vessel or vehicle.
Revision of procedure for pre-disposal of Gold:
Sub-section (1D) has been proposed to be inserted in Sec. 110, to provide for revised procedure for disposal of gold seized, wherein jurisdictional Commissioner (Appeals) is being
Content
Customs Indirect Tax 101
