chapter - 3 levy and collection and exemptions
TRANSCRIPT
CUSTOMS ACT, 1962
LEARNING OUTCOME
Understanding provisions of Levy, Exemptions, Assessment of Custom Duty
(A) Imposition of customs duty
Levy Assessment Collection
(B) Factors to determine liability
Goods on which – duty is leviable Point and circumstances of duty Mechanism for assessment Exemption from duty Remission and abatement of duty Relevant date of rate and tariff
(ii) Point and circumstances
Taxable point Clearance of goods Re-importation of goods produced in India (U/s 20) Duty on derelict/ jetsam/ wreck (U/s 21)
(iii) Assessment u/s 2 (2)(a) Means :- Determination of : duty value of goods duty payable along with other documents.(b) Statutory definition: Self assessment (section 17) Re-assessment (section 17) Provisional assessment (section 18) Any assessment – duty assessed is NIL
self Assessment u/s 17 Applies to:- an importer entering any imported goods (U/s 46)- an exporter entering any exported goods (U/s 50)SHALL SELF-ASSESS THE DUTY – LEVIABLE ON SUCH GOODS. Verified by proper officer – examine or test:- Imported goods- Exported goods Electronically mandatory – manually specifically
permitted by Commissioner
re-Assessment u/s 17
INCORRECT SELF-ASSESSMENT U/s 17 (4):
- On verification/ examination/ testing- Self- assessment – Not done correctly- Proper officer may – Re assess the duty leviable
re-Assessment u/s 17 PASSING OF SPEAKING REASSESSMENT ORDER:Any re assessment – done under 17 (4): And it is contrary to self- assessment done – by
importer/ exporter – regarding: valuation, classification, exemption/concessions
OR Importer/ exporter – does not confirm –
acceptance – said re assessment in writing. Pass order – within 15 days - date of re assessment
– bill of entry/ shipping bill
re-Assessment u/s 17 PASSING OF SPEAKING REASSESSMENT ORDER:Any re assessment – done under 17 (4): And it is contrary to self- assessment done – by
importer/ exporter – regarding: valuation, classification, exemption/concessions
OR Importer/ exporter – does not confirm –
acceptance – said re assessment in writing. Pass order – within 15 days - date of re assessment
– bill of entry/ shipping bill
Audit of self assessment Where re- assessment/ speaking order – not
passed. Proper officer may audit:- Assessment of duty- At his office/ at the premises - imported/ export
goods- In manner prescribed – On site Post clearance Audit
at the Premises of Importers and Exporters Regulations, 2011
provisional Assessment u/s 18
It is pending Final Assessment
Cases U/s 18 (1): When importer unable to make self assessment Where proper officer – deems it necessary – to
carry out – chemical or other tests When importer/ exporter – submitted/ produced –
all documents – P.O. – make further enquiry Where necessary documents – Not submitted
Exemption U/s 25
General Special
General: Central Govt. – satisfied – necessary in public interest – exemption (absolutely/ subject to conditions)
Special: Central Govt. – satisfied – necessary in public interest – Special Order ( in exceptional nature) – exempt goods – from payment of duty (cash)
Exemption U/s 25
Grounds for exemptions: Moral Grounds:- Goods do not reach Indian soil- Goods reached India but not available for
consumption- Goods damaged/ deteriorated in transit. Discretionary Grounds: Central Govt., allow
exemption :- For controlling economy- Industrial growth of the country
Exemption U/s 25
Exemption not exceed Statutory Duty Date of implementation Preferential Rate of duty Lower rate of duty under trade agreement
(determination of origin)
Remission and abatement
Remission/ Abatement of duty:
In case of pilfered goods (U/s 13) In case of damaged/ deteriorated goods (U/s 22) In case of lost/ damaged or abandoned goods (U/s
23) Short-packed or short-landed goods
Remission on Pilfered GoodsImporter – not liable to pay duty, if:
Imported goods – pilfered (small theft);Such pilferage – take place- After the un loading thereof and- Before the proper officer – made order for:
- clearance for home consumption- deposit in warehouse
If restored (goods): liable to pay dutyPilferage in Custody: Custodian is liable to pay duty.
Remission on Pilfered GoodsSituation 1: before arrival of goods in India – No Liability.Situation 2: after arrival but before customs clearance – Liable to pay (but extinguished U/s 13 of the Act)Situation 3: after custom examination – but before order of clearance – Liable to pay – but can claim refund.
Remission on lost, destroyed, abandoned
Situation 1: Lost or destroyed It is shown - To the satisfaction of Assistant/ Deputy
Commissioner- That goods – have been: a) Lost (other than
pilferage); b) destroyed- Any time - before clearance - home consumption.Treatment:Assistant/ Deputy Commissioner – shall remit duty on such goods.
Remission on lost, destroyed, abandoned
Situation 2: Relinquishment of TitleOwner of goods – any time before :- Order for home consumption (U/s 47)or- Deposit in warehouse (U/s 60)- Relinquish the titleTreatment:Shall not pay duty on such goods. but not in case of offending goods
Remission on damaged or deteriorated goods
Any of the three circumstances:Situation 1: before arrival of goods in India –Situation 2: after arrival but before customs clearanceSituation 3: after custom examination – but before order of clearance
Then relief of duty - out of total duty is given on such goods
Short packed or short landed goods
Short Packed: not reached Indian territory – NO DUTY
Short landed: by mistake: unloaded at other port or not unloaded – destination: NO DUTY