Category: Custom

Judiciary updates (Direct Tax, Indirect tax & Corporate Laws)-07 Nov 2021

Posted on by Business So Simple in Custom, GST, Income Tax, Legal awareness

HC directs dept to refund GST paid under wrong head by petitioner

SBI Cards & Payment Services Limited Vs Union of India (Punjab & Haryana High Court) dated 08/10/2021

Section 148 reassessment based on mere change of opinion is invalid

Jagannath Promoters & Builders Vs DCIT (Orissa High Court) dated 26/10/2021

Capital subsidy liable to be excluded from computation of book profit

Sunrise Biscuit Co. Pvt. Ltd. Vs ITO (ITAT Gauhati) dated 28/10/2021

No bail to person alleged of fraudulently inducing people to invest in Crypto Currency Chit Fund

Grant of bail was refused as applicant did not return the amounts due to the complainants and there was a breach of trust and faith and was against the national economy and national interest, whereby a large number of innocent investors had been duped of their hard-earned money.

Umesh Verma Vs State (Delhi High Court) dated 26/10/2021

Judgment cannot be given based on evidence recorded in other trial despite same offence

A.T. Mydeen and Another Vs Assistant Commissioner, Customs Department (Supreme Court of India) dated 29/10/2021

There Cannot Be Total Ban on Firecrackers : SC

Goutam Roy And Anr. Vs State of West Bengal & Ors. (Supreme Court of India) dated 01/11/2021

Regards

Bipul Kumar

Revamped Gold Monetisation Scheme, reduction in import duty of gold to help the industry to grow to the next level

Posted on by Business So Simple in Custom, Entrepreneurship

Revamped Gold Monetisation Scheme, reduction in import duty of gold to help the industry to grow to the next level: Anupriya Patel


Reforms would help the industry to achieve export target of US$ 43.75 billion this year and gems and jewellery exports to USD 75 billion in coming years: Anupriya Patel

The Gems & Jewellery sector contributes around 7% to GDP and employs 5 million persons

The Gems & Jewellery sector is one of the important sectors of Indian Economy, with a contribution of around 7% to GDP, 10-12% share in country’s total merchandise export and being one of the leading sectors in terms of employment generation providing employment to approx. 5 million skilled and semi-skilled workforce.

The Minister of State for Commerce and Industry, Anupriya Patel said that she is pleased to learn that without any significant domestic production of raw materials, India has emerged as the leader in diamond manufacturing and export along with being one of largest exporter of other segments of industry such as gold jewellery, silver jewellery, coloured gemstones and synthetic stones. As such, gems and jewellery sector is an ideal example ‘Make in India’, the vision of Honourable Prime Minister.

She informed that the Gems and Jewellery sector has been one of the worst-hit sectors in India during the Covid-19 pandemic and its exports saw a record decline of (-) 98% in April 2020 due to the complete lockdown situation in the country.

However, the GJEPC, being apex body of gems and jewellery exporters, has undertaken prompt measures in terms of constantly interacting with the industry, understanding their requirements, and working closely with the government so as to chalk out the desired measures for supporting the industry in terms of sustaining, surviving and reviving back even amid a critical situation like Covid-19.

Consequent to such measures, the sector shown swift recovery as declining rate of gems and jewellery exports fell to (-) 6 % in Q3 as compared to (-) 72 % recorded in quarter 1  and in Q4 exports of the gems and jewellery witnessed a positive growth of around 15%. This trend has continued this year also and gems and jewellery exports achieved pre-Covid level of exports amounting US$ 9.2 billion in Q1 2021-22.

On the policy front, the Government has introduced a number of reforms, such as the revamped Gold Monetisation Scheme, reduction in import duty of gold, hallmarking, etc. which would help the industry to grow to the next level. Other issues flagged by GJEPC and industry from time to time are also being looked into and expected to be resolved soon.

She said that she’s sure this would not only help the industry to transform but will take the exports on a steep upward trajectory. This would help the industry to achieve export target of US$ 43.75 billion this year as well as to achieve goal of GJEPC to take gems and jewellery exports to USD 75 billion in coming years.

With support of the Government, GJEPC organized various virtual trade events last year like virtual Buyer Seller Meets, virtual IIJS, virtual International Gems & Jewellery Show (e-IGJS), India Global Connect, Webinars etc. These initiatives have helped the industry to bounce back quickly as the pandemic receded and global markets opened up.

She said that she has been informed that IIJS Premiere is the country’s largest B2B show in gems and jewellery sector and also the first show being organized by GJEPC in physical format after the onset of the COVID-19 pandemic. 

“I am confident that the show would provide platform to Indian jewellery manufacturers to showcase versatile jewellery crafted with the highest standards of design and finish and also to work with retailers, enabling them to gain insights into demand trends and product designs. On the other hand, the show would cater to the sourcing needs of the domestic and international buyers before the start of the festive season,” the MoS said.

She also wished the 37th edition of IIJS Premiere a tremendous success!

Ministry of Commerce & Industry Press Release dated 15th Sept 2021

De-notification of Inland Container Depots/Container Freight Stations/Air Freight Stations

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Providing relief to custodians of Inland Container Depots (ICDs) and Container Freight Stations (CFSs) across the country, the CBIC today streamlined the procedure of closure of these facilities in maximum of four months only. No timeline was specified earlier.

ICDs and CFS play a vital role in the exim trade as they store and clear import and export goods. These facilities are notified under the Customs Act, 1962 and are administered by the Customs authorities. However, at times a custodian may like to close (de-notify) the facility. The disposal of un-cleared, seized and confiscated goods import/export are prerequisites for the de-notification. The CBIC noted that this process was taking a long time which caused difficulties for the custodians. 

The newly issued Circular No. 20/2021-Customs dated 16.08.2021 requires a custodian intending to wind up the operation to submit an application to jurisdictional Principal Commissioner/Commissioner of Customs for de-notifying the ICD/CFS. A Nodal Officer at the level of Deputy/Assistant Commissioner of Customs would then facilitate the de-notification by coordinating the disposal of the goods lying at the facility in a time bound manner.

The new procedure would ensure undue cost and time over runs are avoided. Importantly, the de-notification shall be completed within a maximum of four months from the date of receipt of complete application. This is yet another trade facilitation initiative by CBIC.

Ministry of Finance Press Release dated 17th Aug 2021

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India and EU have agreed to resume the negotiations for a balanced, ambitious, comprehensive and mutually beneficial trade agreement

Posted on by Business So Simple in Custom, Entrepreneurship

India and EU have agreed to resume the negotiations for a balanced, ambitious, comprehensive and mutually beneficial trade agreement. Free Trade Agreement (FTA) negotiations, including those on specific issues, are to be held considering the interest of either side. The commodities included / excluded in the FTA negotiations are to be finalized based on extensive consultations with the stakeholders, once negotiations resume.

Review of the existing FTAs is an ongoing process to maximize country’s export potential to benefit the domestic industry, and to make the FTAs more user friendly, simple and trade facilitative.

This information was given by the Minister of State in the Ministry of Commerce and Industry, Smt. Anupriya Patel, in a written reply in the Lok Sabha today.

Ministry of Commerce & Industry Press Release dated 04th Aug 2021

Various measures taken by Government for promotion of exports, Government is continuously engaged in strengthening Indian industry through “ease of doing business” for improving the business environment and attracting foreign investments

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Government is committed for promoting Indian exports in international markets and suitable interventions are done from time to time. The key schemes/interventions taken are:

  1. The Foreign Trade Policy has been extended upto 30.09.2021 to provide a stable regime during the Covid-19 pandemic.
  2. Schemes such as the Advance Authorization Scheme and the Export Promotion Capital Goods (EPCG) Scheme are being implemented to enable duty free import of raw materials and capital goods for export production.
  3. The Interest Equalization Scheme, which provides pre and post shipment Rupee export credit has been extended upto 30.09.2021.
  4. Remission of Duties and Taxes on Exported Products (RoDTEP) scheme has been operationalized for exports with effect from 01.01.2021.
  5. It has been decided to extend the Rebate of State and Central Levies and Taxes (RoSCTL) Scheme for apparel and made-up exports till March 2024.
  6. Transport and Marketing Assistance (TMA) scheme for specified agriculture products provides assistance for the international component of freight and marketing of agricultural produce and to promote brand recognition for Indian agricultural products in the specified overseas markets.
  7. A common digital platform for Certificate of Origin (CoO) has been launched to increase Free Trade Agreement (FTA) utilization by exporters. 
  8. In order to leverage the full export potential of our vast country,  Districts are being promoted as Exports Hubs by identifying products and services with export potential in each district, addressing bottlenecks for exporting these products/services and supporting such local exporters/manufactures through institutional and strategic interventions. District specific export action plans for 478 districts have been prepared.
  9. Exports of services is being supported through negotiating meaningful market access through multilateral, regional and bilateral trade agreements, through participation in and organization of international fairs/exhibitions like the Global Exhibition on Services. An ‘Action Plan for Champion Sectors in Services’ is being developed  to give focused attention to identified Champion Services Sectors through  identified nodal Ministries/Departments
  10. Assistance is being extended to exporters under the Market Access Initiative (MAI) scheme for various activities such as export market research & product development, product registration, organizing / participating in fairs, exhibitions and Buyer Seller Meets (BSMs) abroad, Reverse Buyer Seller Meets etc.
  11. In order to have a coordinated and focused attention on development of export infrastructure, a working group on infrastructure up-gradation has been constituted under National Committee on Trade Facilitation (NCTF) and a National Trade Facilitation Action Plan (NTFAP) has been formulated. This includes measures for improving road and rail connectivity to ports and smart gates at sea ports.

Government is continuously engaged in strengthening Indian industry through “ease of doing business” for improving the business environment and attracting foreign investments.

To make domestic manufacturing globally competitive and to create global champions in manufacturing,Production Linked Incentive (PLI) Schemes in 13 sectors are being implemented. The Government has initiated a review of some of the existing Free Trade Agreements (FTAs) to maximize its export potential to benefit domestic industry as well as to make them more user friendly, simple and trade facilitative. In addition, bilateral trade negotiations have been initiated with a number ofcountries.

This information was given by the Minister of State in the Ministry of Commerce and Industry, Smt. Anupriya Patel, in a written reply in the Lok Sabha today.

Ministryof Commerce & Industry Press Release dated 04th Aug 2021

CBIC launches Compliance Information Portal (CIP)

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CBIC launches Compliance Information Portal (CIP)


CIP provides free access to information on all Customs procedures and regulatory compliance for nearly 12,000 Customs Tariff Items

Ministry of Finance Press Release dated Aug 04, 2021

The Central Board for Indirect Taxes & Customs (CBIC) here today launched the Indian Customs Compliance Information Portal (CIP) at www.cip.icegate.gov.in/CIP for providing free access to information on all Customs procedures and regulatory compliance for nearly 12,000 Customs Tariff Items.

CIP is yet another facilitation tool developed by CBIC to empower our business as well as any interested person with up-to-date information on the legal and procedural requirements of Customs and Partner Government Agencies (FSSAI, AQIS, PQIS, Drug Controller etc.) for carrying out imports and exports.  The portal would provide at the click of a button complete knowledge of all import and export related requirements for all items covered under the Customs Tariff thereby improving the ease of doing cross border trade.

For using CIP, one can simply enter either the Customs Tariff Heading (CTH) or the description of the goods in question to get information to step-by-step procedures, regulatory compliances requirements like License, Certificates, etc., for imports as well as exports. This includes import and export through posts and courier, import of samples, reimport and reexport of goods, self-sealing facility for exporters and project imports.

Another important feature of CIP is a pan India map showing all the Customs seaports, airports, land customs stations etc. It also contains addresses of the regulatory agencies and their websites.

Notification No. 63/2021-CUSTOMS (N.T.) in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver- Reg.

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In exercise of the powers conferred by sub-section (2) of section 14 of the Customs Act, 1962 (52 of 1962), the Central Board of Indirect Taxes & Customs, being satisfied that it is necessary and expedient to do so, hereby makes the following amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 36/2001-Customs (N.T.), dated the 3rd August, 2001, published in the Gazette of India, Extraordinary, Part-II, Section-3, Sub-section (ii), vide number S. O. 748 (E), dated the 3rd August, 2001, namely:-

In the said notification, for TABLE-1, TABLE-2, and TABLE-3 the following Tables shall be substituted, namely: –

Refer Ministry of Finance Press Release dated 30 July 2021

Notification No. 63/2021-CUSTOMS (N.T.) in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver- Reg.

https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1740921&RegID=3&LID=1

CBIC reduces compliance burden by abolishing renewals of licenses/registrations

Posted on by Business So Simple in Custom, GST

The Central Board of Indirect Taxes and Customs (CBIC) has w.e.f. 23.07.2021 abolished the requirement of periodic renewals of Licence/Registration issued to Customs Brokers and Authorised Carriers. This would greatly help reduce the compliance burden cast on the trade, which had to otherwise make application and submit numerous documents to renew their licenses/registrations.

The net effect of the amendments carried out to the Customs Brokers Licensing Regulations, 2018 and Sea Cargo Manifest and Transhipment Regulations, 2018, is that the existing licenses/registration would have a lifetime validity.

Another change that has been introduced is to allow a licensee/registration holder to voluntarily come forward to surrender his license/registration if s/he wishes. Also, a provision has been made to invalidate licences/registrations that are inactivity for more than a year. These steps would prevent misuse of dormant licences/registrations by unscrupulous person who misdeclare import or export or wrongly obtain export refunds/incentives and when caught, put the burden on the original license/registration holder. At the same time, the interest of the genuine trade is safeguarded by empowering the Commissioners of Customs to revalidate the licence/registration in case the inactivity is for genuine reasons.

The life-long validity of licenses/registrations is expected to provide a major relief to the trade by reducing their compliance burden and promoting the Ease of Doing Business in India. Removing the requirement of seeking periodic renewals also reduces interface between the Customs and the trade, which is a deliverable of the CBIC’s ‘Contactless Customs’ initiative, a critical component of its flagship Turant Customs programme. 

Ministry of Finance Press Release dated 24 July 2021