CBIC Notifies Exemption from Deposits in ECL for Specified goods u/s 51A(4) of Customs Act till 30th April, 2023 [Read Notification]

The Central Board of Indirect Tax and Customs (CBIC) issued the notification on exemption from Deposits in Electronic Credit Ledger (ECL) for specified goods under section 51A(4) of Customs Act till April 30, 2023 on 30th March 2023.  The provision empowers the Government to make the exemptions.

The exempted deposits are:

1. with respect to goods imported or exported in customs stations where customs automated   system is not in place;

    II.    with respect to goods imported or exported in International Courier Terminals;

   III.    with respect to accompanied baggage;

   IV.    other than those used for making electronic payment of, –

1. any duty of customs, including cesses and surcharges levied as duties of customs;
2. integrated tax;
3. Goods and Service Tax Compensation Cess;
4. interest, penalty, fees or any other amount payable under the Act, or Customs Tariff Act, 1975 (51of 1975),

from all of the provisions of section 51A of the Customs Act.

The notification shall come into effect from the 1st April, 2023 and shall be effective till the 30th April, 2023.

According to Section 51, payments for taxes, fines, and interest must be made via an electronic credit ledger. According to the section, every deposit made in payment of duty, interest, penalties, fees, or any other sum due by a person under the terms of this Act, the Customs Tariff Act of 1975, or any other law currently in effect or the rules and regulations made thereunder shall, subject to such conditions and restrictions, be credited to the person’s electronic cash ledger, to be maintained in such a manner as may be prescribed.

Section 51A(4) of the Customs Act, 1962, states about the payment through electronic credit ledger. As per section 51A(4) “Notwithstanding anything contained in this section, if the Board is satisfied that it is necessary or expedient so to do, it may, by notification, exempt the deposits made by such class of persons or with respect to such categories of goods, as may be specified in the notification, from all or any of the provisions of this section.”

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