BACKGROUND OF INDIRECT TAX LAW

Transcription

1 CONTENTS u Chapter-heads I-5 u Section-wise Index I-17 DIVISION ONE LIABILITY OF CUSTOMS DUTY 1 BACKGROUND OF INDIRECT TAX LAW 1.1 Features of Indirect Taxes Constitution of India Bill, Act, Ordinance and Rules Information on website Budget Foreign Trade Policy INTRODUCTION TO CUSTOMS DUTY 2.1 Brief background of Customs Law Nature of customs duty Territorial waters and customs waters Goods under Customs Act Classification for Customs and rate of customs duty 28 3 TYPE OF CUSTOM DUTIES 3.1 Basic customs duty Additional customs duty u/s 3(1) (CVD) 32 I-7

2 CONTENTS I Education cess on customs duty Secondary and Higher Education Cess Additional duty under section 3(3) Additional duty under section 3(5) (Special CVD - SAD) Protective duties Countervailing duty on subsidised goods Anti-dumping duty on dumped articles Safeguard duty NCCD of Customs Export duty Cess 68 4 CLASSIFICATION OF GOODS 4.1 Central Excise Tariff Act (CETA) and Customs Tariff Act (CTA) Overview of Tariff Rules for Interpretation of Tariff Application of GIR in Tariff Classification in case of conflict between various headings Other provisions relating to classification Classification of parts 95 5 PRINCIPLES OF CLASSIFICATION 5.1 Trade Parlance Theory HSN and classification Relevance of end use in classification Other principles of classification Ayurvedic, Unani, Homoeopathic medicines 118 DIVISION TWO VALUATION IN CUSTOMS 6 VALUATION FOR CUSTOMS DUTY 6.1 Value for purpose of Customs Act 123

3 I-9 CONTENTS 6.2 Transaction value at the time and place of importation Rate of Exchange for Customs Valuation WTO Valuation Agreement Customs Value - Inclusions Exclusions from Assessable Value Valuation of second hand machinery and old motor cars Declaration of value by importer Illustration of calculations of customs duty Customs value as per earlier section 14(1) METHODS OF VALUATION FOR CUSTOMS 7.1 WTO Valuation Agreement Transaction value of same goods for customs valuation Transaction value of identical goods for customs valuation Transaction value of similar goods for customs valuation Deductive value for customs valuation Computed value for customs valuation Residual method for customs valuation VALUATION OF EXPORT GOODS 8.1 Transaction value for assessment Over invoicing/mis-declaration for export Earlier provisions relating to customs value of export goods UNDERVALUATION OF CUSTOMS DUTY 9.1 Transaction value to be normally accepted Cases where charge of undervaluation not held valid Cases where charge of undervaluation held valid Burden of proof of undervaluation in customs Debit of Import Authorisation only with invoice value 205

4 CONTENTS I-10 DIVISION THREE PROCEDURES IN CUSTOMS 10 CUSTOMS PROCEDURES 10.1 Administrative set up of Central Excise and Customs Binding nature of departmental circulars General provisions relating to procedures Self assessment of customs duty Containers and Inland Container Depots Miscellaneous Customs Procedures Coastal goods IMPORT PROCEDURES 11.1 Import procedures by carrier Overview of procedures for import Submission of Bill of Entry Self-assessment of customs duty Provisional assessment Relevant date for rate and valuation of import duty Relevant date for foreign exchange rate Execution of bond Customs clearance from view of import policy Procedure after assessment and checking of authorization Import of software through data communication Demurrage if goods not cleared from customs Disposal if goods not cleared within 30 days EXPORT PROCEDURES 12.1 Procedures by person in charge of conveyance Procedure to be followed by exporter Permission to export by customs Other procedures relating to exports 290

5 I-11 CONTENTS 13 BAGGAGE 13.1 General provisions about baggage Rate of customs duty on baggage Exemptions/restrictions on baggage Baggage of Indian resident or foreigner residing in India Concession to persons transferring his residence (TR) Concessions to tourists Practical examples on baggage Other provisions of baggage CUSTOMS PROCEDURES FOR COURIER AND POST 14.1 Import and export through courier Export and import by post 318 DIVISION FOUR EXEMPTIONS AND DEMANDS IN CUSTOMS 15 EXEMPTION FROM DUTY 15.1 Tariff rate and effective rate of duty Exemption from duty by a notification Exemption optional Other provisions in respect of exemption Exemption when required certificate obtained later SPECIFIC EXEMPTIONS IN CUSTOMS 16.1 Exemption from Customs Duty Project imports General exemptions under customs notifications Control over end use exemptions 346

6 CONTENTS I INTERPRETATION OF EXEMPTION NOTIFICATION 17.1 Strict construction of exemption notification Purposive interpretation of exemption notification Relevance of end use in exemption notification Relevance of tariff for interpretation of exemption notification Other principles of interpretation REMISSION, RE-IMPORTS AND RE-EXPORTS 18.1 Remission on lost/pilfered goods Remission on relinquished goods Abatement of duty on damaged goods Re-import of goods Refund of customs duty if imported goods are rejected Re-exports DEMANDS OF CUSTOMS DUTY 19.1 Short payment of customs duty Time limit for demand of duty Show cause notice Who can issue show cause notice Requirements of show cause notice Revised show cause notice/corrigendum Authority cannot go beyond show cause notice Serving of show cause notice Reply, Hearing and Order by adjudicating authority Provisional attachment pending adjudication INTEREST FOR DELAYED PAYMENT OF DUTY 20.1 Interest if duty paid late Nature of tax, penalty and interest 400

7 I-13 CONTENTS 21 DEMANDS FOR SUPPRESSION, MISSTATEMENT OR FRAUD 21.1 Extended period for demand Wilful suppression of facts Primary facts must be disclosed, but not the inferences Fraud/Misstatement/Collusion Notice for demand for suppression, fraud Burden of proof is on department Voluntary payment in case of show cause notice alleging suppression of facts RECOVERY OF DUES 22.1 Recovery of sums due to Government Detention and sale of property General provisions in respect of recovery 416 DIVISION FIVE OTHER PROVISIONS IN CUSTOMS 23 REFUND OF CUSTOMS DUTY 23.1 Claim of refund when appeal not required Procedure for filing refund application Time limit for filing refund application Refund when benefit could not be availed due to department s mistake Duty collected from buyer must be paid Proof of not passing of burden Interest on late disbursement of refund Consumer Welfare Fund Applicability and validity of doctrine of unjust enrichment Non-application of provisions of unjust enrichment Refund if amount returned to buyer by cheque or credit note or debit note 465

8 CONTENTS I WAREHOUSING IN CUSTOMS 24.1 Need for warehousing Public/Private bonded warehouses Warehousing period under customs Manufacture in customs bonded warehouse Clearance from bonded warehouse Other provisions of customs warehousing Storage in warehouse pending clearance OTHER PROVISIONS IN CUSTOMS LAW 25.1 Prohibitions on Imports and Exports Customs Broker Suspension or revocation of CB licence Limited liability of Customs Broker (CB) Stores in customs Customs - Other provisions PENALTIES AND APPEALS IN CUSTOMS 26.1 Departmental Adjudication Enforcement Powers of Revenue Officers Penalties Confiscation of goods Criminal offences Proof in adjudication and prosecution Appeals 538 DIVISION SIX FOREIGN TRADE POLICY 27 OVERVIEW OF FOREIGN TRADE POLICY 27.1 Background FT(D&R) Act 550

9 I-15 CONTENTS 27.3 Foreign Trade Policy General provisions regarding procedures under FTP Import/Export authorisation Export promotion councils Policy for import of goods Restrictions on exports Status Holders Deemed exports Penalties/punishments for violation of Foreign Trade Policy (FTP) EXPORT PROMOTION SCHEMES 28.1 Schemes for encouraging exports Highlights of EOU/SEZ scheme Setting up an EOU/STP/EHTP/BTP Obtaining approval for setting up EOU/STP/EHTP/BTP Joint Venture and Technology Agreement Promotional measures through duty credit schemes Duty credit scrips DUTY DRAWBACK 29.1 Drawback of duty on inputs Type of drawback rates Drawback rate fixation Drawback claim procedure Drawback - Other provisions Duty drawback on re-export EOU AND SIMILAR SCHEMES 30.1 An overview of EOU scheme Inputs and capital goods without payment of duty Bonding period for EOU All purpose bond in form B Procedures by EOU Exit of EOU (Earlier known as Debonding) 647

10 CONTENTS I Recovery of duty and penal action on EOU Other provisions in respect of EOU EOU and Customs Law Central Excise and EOU Excise procedures by EOU units Service tax and EOU Income-tax and EOU/SEZ Other schemes similar to EOU SPECIAL ECONOMIC ZONES 31.1 SEZ to encourage exports Special Economic Zones Act and Rules Setting up a new SEZ Benefits to developer Development Commissioner Setting up a unit in SEZ Routine operations in SEZ Sale to SEZ from DTA Sale from SEZ to DTA Tax exemptions to SEZ Miscellaneous provisions FEMA provisions relating to SEZ SEZ policies of State Governments OTHER EXPORT PROMOTION SCHEMES 32.1 Advance authorisation Duty Entitlement Pass Book Scheme (DEPB Scheme) Duty Free Import Authorisation (DFIA) Liability of transferee of authorisation/credit EPCG authorisation Project imports 757 SUBJECT INDEX 759