The scheme of Advance Ruling is being extended to Resident firm in Central Excise

The scheme of Advance Ruling is being extended to Resident firm in Central Excise and Customs. Notification No.11/2015-Central Excise (N.T.) and No.27/2015-Customs (N.T.) both dated 1st March, 2015 refer. 

#budget 2015 No prosecution , if adjudication proceedings on same facts have attained finality

5. Circular No.998/5/2015-Central Excise dated 28th February, 2015 is being issued directing that application for withdrawal of prosecution be filed in accordance with law where the quasi-judicial proceedings on identical set of facts have not been upheld and same has attained finality. 
   

#budget2015 "place of removal" has been defined for Exporters under Central Excise Act,1944

5. Circular No.999/6/2015-Central Excise dated 28th February, 2015 is being issued to clarify the scope of the term “place of removal” in case of export of goods by Manufacturers exporters as well as Merchants Exporters. 
   

Central Excise Registeration is easy. Issued in two working days.Post issue document verification.

Registrationprocess in Central excise is being simplified to ensure that registration is granted within two working days of the receipt of a duly completed application form. Verification of documents and premises, as the case may be, shall be carried out after the grant of the registration. Notification No.7/2015-Central Excise (N.T.) dated 1st March, 2015 and  Circular No.997/4/2015-Central Excise dated 28th February, 2015 issued in this regard may be referred for details of the simplified process.

 

#budget2015 time limit increased for taking CENVAT credit and filing return. Reversal of CENVAT credit for non-excise able goods and new guidelines for utilising CENVAT credits

2. CENVAT Credit Rules, 2004 are also being amended to –
   
   1. (i)  Increase the time limit for taking CENVAT credit on inputs and input services from
      the present six months to one year (Rule 4 of CCR refers),
      
   2. (ii)  Increase the time limit fir return of Capital Goods from a job worker from the present
      six months to two years (Rule 4 of CCR refers),
      
   3. (iii)  Make provision relating to reversal for CENVAT Credit in rule 6, presently
      applicable to exempt goods and services, applicable to non-excisable goods also,
      
   4. (iv)  Provide for recovery of CENVAT Credit taken but NOT utilized (rule 14 refers). Further, the manner of determining utilization of Credit is also being provided in the
      rule itself.
      

[Notification No.8/2015-Central Excise (N.T.) and No.6/2015-Central Excise (N.T.) both dated 1st March, 2015 refer]

#Budget2015 Digital signed Invoice and keeping records in electronic form under Excise Rule

2. Central Excise Rules, 2002 are also being amended to provide for issue of digitally signed invoices and preservation of records in electronic form by a manufacturer (Rule 10 and 11 of CER refers). 
   

Application of certain provisions of excise and CENVAT rules, presently applicable to the registered dealers, to apply to the registered importers also.

Application of certain provisions of  CentralExciseRules(CER),2002 and CENVATCreditRules(CCR),2004  are bpresently applicable to the registered dealers, to apply to the registered importers also. 

#Budget2015 Direct dispatch of inputs and capital goods to job worker Is made easy

Direct dispatch of inputs and capital goods to job worker without first bringing them to the manufacturer’s /output service provider’s premises subject to the conditions specified therein (Rule 11 of CER and Rule 4 of CCR refers),

#Budget2015 direct despatch of goods by registered dealer/registered importer made easy now

Direct dispatch of goods to registered dealer’s/ registered importer’s customers without first bringing them to the dealer’s / importer’s registered premises subject to the conditions specified therein (Rule 11 of CER and Rule 4 of CCR refers)

AMENDMENTS IN CENTRAL EXCISE RULES, 2002 AND CENVAT CREDIT RULES, 2004

Amendments in Central Excise Rules (CER),2002 and CENVAT Credit Rules(CCR),2004 are being simultaneously being done to provide for-

(i) Direct dispatch of goods to registered dealer’s/ registered importer’s customers without first bringing them to the dealer’s / importer’s registered premises subject to the conditions specified therein (Rule 11 of CER and Rule 4 of CCR refers),

(ii) Direct dispatch of inputs and capital goods to job worker without first bringing them to the manufacturer’s /output service provider’s premises subject to the conditions specified therein (Rule 11 of CER and Rule 4 of CCR refers),

(iii) Definition of “export goods” (rule 5 of CCR refers) and “export” (rule 18 of CER refers),

(iv) Application of certain provisions of these rules, presently applicable to the registered dealers, to apply to the registered importers also. 

#Budget2015 Penalties are rationalised under Section 11AC of Excise & Salt Act,1944.

2.   Section 11AC is being substituted so as to rationalize the penalty as follows:
   (i) in cases not involving fraud or collusion or wilful mis-statement or suppression of facts or contravention of any provision of the Act or rules with the intent to
   evade payment of excise duty, in the following manner,-
   
   1. a)  in addition to the duty as determined under sub-section (10) of section
      11A, a penalty not exceeding 10% of the duty so determined or Rs.5000
      whichever is higher shall be payable;
      
   2. b)  if duty and interest payable thereon under section 11AA is paid either
      before issue of show cause notice or within 30 days of issue of show cause notice, no penalty shall be payable and all proceedings in respect of said duty and interest shall be deemed to be concluded;
      
   3. c)  if duty as determined under sub-section (10) of section 11A and interest payable thereon under section 11AA is paid within 30 days of the date of communication of order of the Central Excise Officer who has determined such duty, the amount of penalty shall be equal to 25% of the penalty so imposed, provided that such reduced penalty is also paid within 30 days of the date of communication of such order.
      
   (ii) in cases involving fraud or collusion or wilful mis-statement of suppression of facts or contravention of any provision of the Act or rules with the intent to evade payment of excise duty, in the following manner,-
   

a) in addition to the duty as determined under sub-section (10) of section 11A, a penalty equal to the duty so determined shall be payable. In respect of cases where the details relating to such transactions are recorded in the specified record for the period beginning with 8th April, 2011 and upto the date of assent to the Finance Bill, 2015, the penalty

payable shall be 50% of the duty so determined.

2. b)  if duty and interest payable thereon under section 11AA is paid within
   30 days of communication of show cause notice, the amount of penalty payable shall be 15% of the duty demanded, provided that such reduced penalty is also paid within 30 days of communication of show cause notice and all proceedings in respect of said duty, interest and penalty shall be deemed to be concluded;
   
3. c)  if duty as determined under sub-section (10) of section 11A and interest payable thereon under section 11AA is paid within 30 days of the date of communication of order of the Central Excise Officer who has determined such duty, the amount of penalty shall be equal to 25% of the duty so determined, provided that such reduced penalty is also paid within 30 days of the date of communication of such order; and 
   
   (iii )(a)  If the duty amount gets modified in any appellate proceeding, then the
   
   penalty amount mentioned in (ii) (a) above and interest shall also stand modified accordingly. Where the duty amount is increased in the appellate proceedings, the benefit of reduced penalty as specified shall be admissible if duty, interest and reduced penalty in relation to such increased amount is paid within 30 days of such appellate order.
   (b) Cases where no show cause notice has been issued prior to the date on which the Finance Bill, 2015 receives the assent of the President, shall be governed by provisions of section 11AC as amended.
   (c) Proceedings in the pending show cause notices can be closed – (i) on payment of duty, interest and penalty @ 15% of the duty in cases involving fraud, collusion, -willful mis-statement, etc. can be paid within 30 days of communication of the adjudication order if the duty, interest and penalty is paid within such time.
    statement, etc. and (ii) on payment of duty and interest in cases not involving fraud, collusion, willful mis-statement, etc., within 30 days of the Finance Bill, 2015 receiving the assent of the President. In all cases where show cause notices are adjudicated after the Finance Bill, 2015 receives the assent of the President, reduced penalty @ 25% of the duty in cases involving fraud, collusion, willful mis-statement, etc. and 25% of the penalty imposed in cases not involving fraud, collusion, willful mis-statement, etc. can be paid within 30 days of communication of the adjudication order if the duty, interest and penalty is paid within such time. 
   

#Budget2015 Section 11 A of Central Excise & salt Act 1944 is amended for return date and short payment of duty

2. Section 11A is being amended so as to:
   
   1. (i)  Remove from the statute provisions relating to the category of cases where
      fraud, collusion, willful mis-statement, etc. is involved but the transaction is recorded in the specified record so as to bring uniformity in treatment of all such cases irrespective of whether the transaction is so recorded or not;
      
   2. (ii)  Amend the provision relating to relevant date to provide definition of relevant date in respect of cases where a return is not filed on the due date and cases where only interest is required to be recovered.
      
   3. (iii)  Provide that the provisions of section 11A shall not apply to cases where the non-payment or short payment of duty is reflected in the periodic returns filed and that in such cases recovery of duty shall be made in such manner as may be prescribed in the rules. 
      

#Budget2015 Basic Custom duty on motor vehicle for transport of goods is now 40%.

1. Custom Tariff  Heading  8704 ,that for  motor vehicles for the transport of goods, is being increased from 10% to 40%. 
   

#Budget2015 Basic custom duty increased on motor vehicle for transport of ten or more person

1. The tariff rate of basic customs duty on goods falling under all the tariff items of heading 8702 that is motor vehicles for the transport of ten or more persons, including  is being increased from 10% to 40%. 
   

#Budget2015 Re-adjudication cases will not come under purview of Settlement Commission

3. The proviso to clause (b) of section 127A relating to the provisions of Settlement Commission is being amended to 
   
                                         delete the reference to “in appeal or revision, as the case may be” so as to provide that when any proceeding is referred back, whether in appeal or revision or otherwise, by any court, Appellate Tribunal Authority or any other authority to the adjudicating authority for a fresh adjudication or decision, then such case shall not be entitled for settlement. 
   

#Budget2015 penalty on improper export is also quantified ,subjected to payment of duty &interest

3. Section 114 provides for penalty for attempt to export goods improperly, etc. 
   
   Section 114 is being amended so as to substitute clause (ii) to provide that any person who, in relation to any dutiable goods, other than prohibited goods, does or omits to do any act which act or omission would render such goods liable to confiscation under section 113, or abets the doing or omission of such an act, shall, subject to the provisions of section 114A, be liable to a penalty not exceeding 10% of the duty sought to be evaded of Rs.5000, whichever is greater. 
   
   
   It is also being provided that in cases of short levy or non- levy or short payment or non-payment and erroneous refund of duty for reasons of collusion or any willful mis-statement or suppression of facts, if the duty as determined under sub-section (8) of section 28 and the interest payable thereon under section 28AA is paid within 30 days from the date of communication of the order of the proper officer determining such duty, the amount of penalty liable to paid by such person under this section shall be 25% of the penalty so determined. 
   

# Budget2015 penalty under section 112 is also reduced for improper importation of dutiable goods

1. Section 112 provides for penalty for improper importation of goods, etc. 
   
   Section 112 is being amended so as to substitute sub-clause (ii) of clause (b) to provide that any person who acquires possession of or is in any way concerned with or in any other manner deals with any dutiable goods, other than prohibited goods, which he knows or has reasons to believe are liable to confiscation under section 111, shall, subject to the provisions of section 114A, be liable to a penalty not exceeding 10% of the duty sought to be evaded or Rs.5000, whichever is greater.
   
   
   Penalty for erroneous refund of duty is  25% of such duty ,provided that demanded duty & interest paid within 30 days.
   
   
    It is also being provided that in cases of short levy or non-levy or short payment or non-payment and erroneous refund of duty for reasons of  collusion or any willful mis-statement or suppression of facts, if the duty as determined under sub-section (8) of section 28 and the interest payable thereon under section 28AA is paid within 30 days from the date of communication of the order of the proper officer determining such duty, the amount of penalty liable to paid by such person under this section shall be 25% of the penalty so determined.
   
    
   

#Budget2015 Intenational short payment of duty will also attract 10% less penalty

0. After Amedment of  Section 28 of Customs Act, 1962,  penalty amount for wilfully short payment  of duty is reduced from 25% to 10 %.
   
   It is Provided that in cases involving fraud or collusion or wilful mis-statement or suppression of facts or contravention of any provision of the Act or rules with the intent to evade payment of duty, the amount of penalty payable shall be 15% instead of the present 25%. 
   

#Budge2015- No penalty for short payment of duty if paid within 30 days.

1. This is landmark amendment , bonafide short payment of duty  will not attract fine .
   
   By  Inserting a proviso in sub-section (2)of Section 28 of Customs Act thereof to provide that in cases not involving fraud or collusion or wilful mis-statement or suppression of facts or contravention of any provision of the Act or rules with the intent to evade payment of duty, no penalty shall be imposed if the amount of duty along with interest leviable under section 28AA or the amount of interest, as the case may be, as specified in the notice, is paid in full within 30 days from the date of receipt of the notice and the proceedings in respect of such person or other persons to whom the notice is served shall be deemed to be concluded; 
   

For Mega Power Project status provisional, condition is being amended to prescribe furnishing of bank guarantee or fixed deposit receipts for a period of 66 months.

S. No. 338 of Notification No. 12/2012-Central Excise dated17-3-2012 provided Nil excise duty on goods for setting up of Mega Power Project specified in List No. 11 of the said Notification.

 In case of goods for a Project for which certificate regarding Mega Power Project status is provisional, the exemption is subject inter alia to condition that the Chief Executive Officer of the Project furnishes a bank guarantee or fixed deposit receipt for a term of 36 months or more.


 This condition is being amended to prescribe furnishing of bank guarantee or fixed deposit receipts for a period of 66 months. Condition No. 43(b) of Notification No.12/2012- Central Excise, dated 17th March, 2012 as amended by notification No.12/2015-Central Excise, dated 1st March, 2015 refers.