Complete Case Digest on CBIC Circulars 2023

The Central Board of Indirect Taxes is under the Department of Revenue, Finance Ministry, Government of India. The CBIC was previously known as the Central Board of Excise and Customs (CBEC).It engages in policy formulation of matters concerned with the levy and collection of central excise duties, customs, central goods and services tax and IGST, administration of these taxes, prevention of smuggling and also narcotics to the extent prescribed. The CBIC is the administrative authority for its subordinate organisations, including Central Excise and Central GST Commissionerates, Custom Houses and the Central Revenues Control Laboratory.CBIC is a statutory body established under the Central Boards of Revenue Act, 1963.CBIC was formed in 1964 when the Central Board of Revenue was split into the Central Board of Direct Taxes (CBDT) and the Central Board of Excise and Customs, which was renamed the Central Board of Indirect Taxes and Customs in 2018.The Central Board of Revenue was set up under the Central Board of Revenue Act, 1924 as the apex body of the Income Tax Department. The CBIC Chairperson is the senior-most Indian Revenue Service (IRS – Customs & Indirect Taxes) officer in India. Apart from being the cadre controlling authority of the IRS (C&IT), he/she is also ex officio Special Secretary to the GOI. The Chairperson is appointed by the Appointments Committee of the Cabinet (ACC). Apart from the chairperson, there are members for Customs; IT & Taxpayer Services; CE, ST & Legal; GST & Tax Policy, Administration & Vigilance; and Investigation. Lets analyse all the CBIC Circulars and Notifications that was published in Taxscan.in. CBIC extends GSTR-1, GSTR-3B and GSTR-7 Filing for whose Principal Business is Situated in Manipur till 31st May 2023 Notification No: 11/2023- Central Tax CITATION: 24th May, 2023 The Central Board of Indirect Taxes (CBIC) notified the extension of filing of Forms GSTR-1, GSTR-3B and GSTR-7 whose principal place of business is situated in the State of Manipur through notification issued on 24th May 2023. The date is extended till May 31st 2023. The notification shall be deemed to have come into force w.e.f. 10th May, 2023 All the above filings were extended till 31st May 2023 and it is only applicable to the principal business situated in the state of Manipur. CBIC reduces Special Additional Excise Duty on production of Petroleum Crude to ‘Nil Per Tonne’ w.e.f. 16 May 2023 NOTIFICATION NO : 22/2023-Central Excise Date of Judgment: 15th May, 2023 The Special Additional Excise Duty (SAED) on the production of petroleum oil has been reduced to “Nil per tonne,” according to a notification vide No. 22/2023-Central Excise dated 15th May 2023 from the Central Board of Indirect Taxes and Customs (CBIC). The notification shall come into force from 16th May 2023. As per the notification, the Central Government within its jurisdiction and powers conferred by section 5A of the Central Excise Act, 1944 read with section 147 of the Finance Act, 2002 amended the Principal Notification No. 18/2022-Central Excise, dated the 19th July, 2022 in public interest. In the notification No. 21/2023 published on 1st May 2023, the Special Additional Excise Duty on petroleum crude was reduced from Rs. 17,000 mentioned in the Principal Notification to Rs. 4,100 tonne. CBIC Extends Exemption from Deposits in ECL for Specified Goods u/s 51A(4) of Customs Act till 30th June 2023 Notification No. 31/2023-Customs (N.T.) Date of Judgment: 26th April, 2023 In accordance with Section 51A(4) of the Customs Act of 1962, the Central Board of Indirect Taxes and Customs (CBIC) announced the extension of the deadline for the listed items to be exempt from deposits in the Electronic Credit Ledger (ECL). The date has been extended from April 30th, 2023 to June 30th 2023. As per the Principal Notification No.18/2023-Customs (N.T.) dated the 30th March 2023, specific goods were exempted under Section 51A(4) of the Customs Act. CBIC extends Exemption from Deposits for Specified goods u/s 51A(4) of Customs Act till 1st July 2023 Notification No: 30/2023-Customs Date of Judgement: 26th April, 2023 The Central Board of Indirect Taxes and Customs (CBIC) has extended the deadline for the listed goods to be exempt from deposits until July 1st 2023 in compliance with Section 51A(4) of the Customs Act of 1962, which takes effect on April 26, 2023. As per the Principal Notification No.19/2022-Customs (N.T.) dated the 30th March 2022, specific goods were exempted under Section 51A(4) of Customs Act, 1962. Some of them are goods imported or exported in customs stations where the customs automated system is not in place, accompanied baggage.etc. CBIC Notifies Exemption from Deposits in ECL for Specified goods u/s 51A(4) of Customs Act till 30th April, 2023 Notification No.18/2023-Customs (N.T.) Date of Judgment: 30th March, 2023 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: 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, – any duty of customs, including cesses and surcharges levied as duties of customs; integrated tax; Goods and Service Tax Compensation Cess; 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. CBIC reminds Taxpayers of the Due Date for Payment of Central Excise Duty for March 2023 Users can make online payment of excise duty and service tax through Automation of Central Excise and Service Tax (ACES) by Central Board of Excise and Customs (CBEC). To make online payment, users are required to have a net banking account with any of the banks enlisted with CBEC. To make the payment, The initial step is for the user to log in to the Service Tax/Central Excise portal, which is cbic-gst.gov.in, using their login credentials. Once logged in, the user needs to generate a challan and select the “Make Payment” option, which will then redirect them to the ICEGATE portal for additional processing. CBIC releases Sampark 2023 containing Contact Information of CBIC Officials The Central Board of Indirect Taxes and customs has released Sampark 2023. Sampark is the consolidated source of CBIC officials’ contact information, facilitating collaboration and ease-of-connect between departments and its officials. It also provides officials with an organizational layout that allows them to better comprehend the organization’s hierarchy. CBIC notifies Revised Customs Duty Rates as per Union Budget 2023 Notification No: 02/2023-Customs Date of Judgement: 1st February, 2023 The Central Board of Indirect Taxes and Customs (CBIC) has notified the revised custom duty rates as per the proposals in the Union Budget 2023. In regard to exemption of blended CNG, the following conditions were laid down that the manufacturers of such blended CNG shall: (i) maintain detailed records regarding the quantum of Biogas or CBG blended with CNG, along with the value thereof, at the registered premises; (ii) submit a reconciliation statement, certified by the statutory auditor to the jurisdictional Commissioner of Central Excise by 10th of the month following every quarter; and (iii) pay the short-paid duty of excise along with applicable interest after such reconciliation. Levy Anti-Dumping Duty on Fishing Net Imported from China Extended till 9th July, 2023: CBIC Notification No: 01/2023-Customs (ADD) Date of Judgment: 6th January, 2023 The designated authority vide initiation notification No. 7/22/2022-DGTR dated 30th September, 2022, published in the Gazette of India, Extraordinary, Part I, Section 1, dated the 30th September, 2022, has initiated review in terms of sub-section (5) of section 9A of the Customs Tariff Act, 1975 (51 of 1975) (hereinafter referred to as the Customs Tariff Act) read with rule 23 of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995 (hereinafter referred to as the said rules), in the matter of continuation of anti-dumping duty on imports of “Fishing Net” (hereinafter referred to as the subject goods) falling under Tariff Heading 5608 11 10 of the First Schedule to the Customs Tariff Act, originating in or exported from China PR (hereinafter referred to as the subject country) CBIC issues Standard Operating Procedure for Scrutiny of GST Returns for FY 2019-20 Onwards Instruction No: 02/2023-GST Date of Judgment: 26th May, 2023 The Central Board of Indirect Taxes and Customs (CBIC) has issued the standard operating procedure or SOP for the scrutiny of Goods and Services Tax (GST) Returns for the Financial Year 2019-2020 onwards. The functionality provides for the detailed workflow for communication of discrepancies noticed, in relation to the details furnished in the returns, by the proper officer in FORM GST ASMT-10 to the registered person, receipt of reply from the registered person in FORM GST ASMT-11, issuance of order in FORM GST ASMT-12 or taking further action for issuance of show cause notice under Section 73 or 74 of CGST Act, 2017 or for referring the matter for Audit or investigation, as the case may be. CBIC issues Circular on Amnesty Scheme for Default in Customs Export Obligation by Advance and EPCG Authorization Holders Circular No.11/2023 CITATION: May 17,2023 The Central Board of Indirect Taxes and Customs (CBIC) issued a circular on the Amnesty Scheme providing One Time Settlement for Default in Export Obligation by Advance and EPCG Authorization Holders. The Ministry had issued Notification No.32/2023-Customs dated 26.04.2023 to amend 13 Customs notifications pertaining to Advance Authorization (AA) and Export Promotion Capital Goods (EPCG) Schemes. This notification was released to implement the Public Notice No.02 dated 01.04.2023 notified by DGFT that has provided a procedure, under category of regularization of bona fide defaults, in which all pending cases of the default in meeting export obligation (EO) may be regularized by the authorization holder on payment of applicable Customs duty, corresponding to the shortfall in EO. CBIC amends Customs Tariff Value of Certain Goods Notification No.34/2023 CITATION: 15 May, 2023 The Central Board of Indirect Taxes and Customs (CBIC) amended the Customs Tariff Value of certain goods like crude palm oil, crude soya bean oil, gold, silver..etc vide notification no. 36/2023 published on 15th May 2023. As per the notification, the Central Government within its jurisdiction and powers conferred by the Section 14(2) Customs Act, 1962 amended the Principal Notification No. 36/2001-Customs, dated the 3rd August 2001 in the public interest. CBIC reduces GST E-Invoice Applicability Threshold from 10 Crores to 5 Crores Notification No: 10/2023 Date of Judgment: 10th May, 2023 The Central Board of Indirect Taxes and Customs (CBIC) has reduced the applicability threshold for e-Invoices from Rs. 10 Crores to Rs. 5 Crores. The notification reduced the limit to include more businesses and to widen the tax-base. The notification issued by CBIC stated as follows: – “In exercise of the powers conferred by sub-rule (4) of rule 48 of the Central Goods and Services Tax Rules, 2017, the Government, on the recommendations of the Council, hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 13/2020 – Central Tax, dated the 21st March, 2020, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 196(E), dated 21st March, 2020. CBIC Notifies Countervailing Duty on SFA from Indonesia, Malaysia and Thailand Notification No.01/2023 CITATION: 4 MAY, 2023 The Central Board of Indirect Taxes and Customs (CBIC) has notified the levy of Countervailing duty on Saturated Fatty Alcohol (SFA) of Carbon chain length C10 to C18 and their blends from Indonesia, Malaysia and Thailand. Countervailing duties, also known as anti-subsidy duties, are import duties imposed under World Trade Organization rules and aimed to neutralise the negative effects of subsidies. CBIC Releases Guidelines for Special All-India Drive against Fake and Bogus GST Registrations Instruction No. 01/2023-GST Date of Judgment: 04th May, 2023 The Central Board of Indirect Taxes and Customs (CBIC) has released instructions with guidelines for the all-India drive against fake Goods and Services Tax (GST) Registrations to tackle loss by bogus Input Tax Credit (ITC) Claims.The instructions released observed that various modus operandi of obtaining such fake registrations have been detected by Central and State Tax administrations. In some cases, forged documents, such as forged electricity bills, property tax receipts, rent agreements, etc. are being used as proof of principal place of business to obtain GST registration. CBIC issues Clarification on Acceptance of Electronic Certificates of Origin (e-CoO) for Preferential Tariffs under the India-Sri Lanka FTA Instruction No: 15/2023- Customs Date of Judgment: 3rd May, 2023 The Central Board of Indirect Taxes and Customs (CBIC) has recently issued instructions to the Customs Officials clarifying that Electronic Certificates of Origin (e-CoO) maybe accepted for benefit of preferential tariffs in respect of goods eligible for such benefits when imported from Sri Lanka as per the India-Sri Lanka FTA (ISFTA). The instructions were directed to the Principal Chief Commissioners / Chief Commissioners of Customs / Customs (Preventive) / Customs and Central Tax, Principal Commissioners / Commissioner of Customs / Customs (Preventive) and Principal Directors General / Directors General under CBIC. CBIC Extends Exemption from Deposits in ECL for Specified Goods u/s 51A(4) of Customs Act till 30th June 2023 In accordance with Section 51A(4) of the Customs Act of 1962, the Central Board of Indirect Taxes and Customs (CBIC) announced the extension of the deadline for the listed items to be exempt from deposits in the Electronic Credit Ledger (ECL). The date has been extended from April 30th, 2023 to June 30th 2023. As per the Principal Notification No.18/2023-Customs (N.T.) dated the 30th March 2023, specific goods were exempted under Section 51A(4) of the Customs Act. CBIC clarifies Interest Payable by Importer on Default of Export Obligation as per Amnesty Scheme On 26th April 2023, the Central Board of Indirect Taxes and Customs (CBIC) amended certain notifications of the Customs Act, 1962. As per the amendment, in case of the default in the export obligation the amount of interest to be paid by the importer shall be payable as specified in the said public notice dated the 1 st April, 2023. The public notice issued on 1st April, 2023 states about the Amnesty scheme for one time settlement of default in export obligation by Advance and Export Promotion Capital Goods (EPCG) authorization holders.According to the public notice, the authorisation holder may regularise all pending cases of failed export obligation (EO) mentioned in paragraph (1) onto the payment of all customs duties that were exempt corresponding to neglected EO, and the interest payable is restricted at an amount not exceeding of 100% of such duties excluded on which interest is due. CBIC extends Exemption from Deposits for Specified goods u/s 51A(4) of Customs Act till 1st July 2023 The Central Board of Indirect Taxes and Customs (CBIC) has extended the deadline for the listed goods to be exempt from deposits until July 1st 2023 in compliance with Section 51A(4) of the Customs Act of 1962, which takes effect on April 26, 2023. The CBIC is in the position of implementing the different indirect tax regulations to make sure that the taxpayers comply with them. Besides, as a support to legal trade and commerce, it is also in charge of collecting and managing indirect tax revenue, combating smuggling and other types of tax evasion. As per the Principal Notification No.19/2022-Customs (N.T.) dated the 30th March 2022, specific goods were exempted under Section 51A(4) of Customs Act, 1962. Some of them are goods imported or exported in customs stations where the customs automated system is not in place, accompanied baggage etc. CBIC extends Waiver of Interest on Import Duty Payable from Customs ECL till April 13 The Central Board of Indirect Taxes and Customs (CBIC) has waived the interest on import duty payable from the Customs Electronic Credit Ledger (ECL) due to revamping of the integration mechanisms for data exchange between ICES, ICEGATE, ICEGATE and Banks and ICEGATE and other stakeholders. The Order by the Central Board of Indirect Taxes and Customs stated, “The Central Board of Indirect Taxes and Customs, had by Order No. 1/2023 – Customs (N.T.) dated 06.04.2023 made the Customs (Waiver of Interest) Order, 2023 (hereafter referred as the said Order) waiving the whole of interest payable under sub-section (2) of section 47 of the Customs Act,1962 (hereafter referred as said Act) for the period from 1st April, 2023 upto and including the 10th April, 2023, in respect of such goods, where the payment of import duty is to be made from the amount available in electronic cash ledger GSTR-9 Non-Filing Amnesty Scheme: All You Need to Know The Central Board of Indirect Taxes and Customs (CBIC) has finally announced the GSTR-9 amnesty scheme, bringing relief to non-filers of the Goods and Services Tax (GST) annual returns. The Central Tax notification 07/2023, was issued on 31st March 2023, with significant benefits for those who missed previous deadlines for filing their annual returns in Form GSTR-9.The benefits under the GST amnesty scheme are available until 30th June 2023, and it is advisable to file the pending GSTR-9 returns during this time to avoid severe consequences. It is essential to note that GSTR-9 must be filed, even if it is a nil-return and cannot be revised once filed. Therefore, taxpayers must ensure the accuracy of the details reported in the missed GSTR-9 returns to avoid any potential notices from the department. CBIC Waives Whole of Interest Payable u/s 47(2) of Customs Act The Central Board of Indirect Taxes Customs (CBIC) notified the waiver of the whole interest payable under sub-section (2) of section 47 of the Customs Act, 1962 for the period from 1st April 2023 up to and including the 10th April 2023, in respect of such goods, where the payment of import duty is to be made from the amount available in electronic cash ledger.The Central Government, by notification no. 28/2002-Customs (N.T.) dated the 13th May 2002 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R 359(E) dated the 13th May 2002, fixed the rate of interest at fifteen per cent per annum for section 47. CBIC notifies Amendments to implement Biometric Based Aadhaar Authentication and Risk-Based Physical Verification in GST Registration The Central Board Of Indirect Taxes and Customs (CBIC) has notified amendments to implement biometric based aadhaar authentication and risk-based physical verification in GST registration. The amendments to the Central Goods and Services Tax (Amendment) Rules, 2023 aim to enhance the efficiency and security of the GST registration. By the latest amendment, the Board has substituted Rule 8(4A) of the CGST Act, 2017 which suggested that the date of submission of the application in cases shall be the date of authentication of the Aadhaar number, or fifteen days from the submission of the application in Part B of FORM GST REG-01 under sub-rule(4), whichever is earlier. CBIC notifies Deemed Withdrawal of Assessment on furnishing Non-filed GST Returns GSTR-10 and GSTR-3B The Central Board of Indirect Taxes and Customs (CBIC) has issued a notification on 31st March 2023, stating that the assessment proceedings initiated by the tax authorities under the Goods and Services Tax (GST) Act will be deemed to have been withdrawn if the taxpayer files the pending GST returns GSTR-10 and GSTR-3B. GSTR-10 is the final return that needs to be filed by a taxpayer whose GST registration has been canceled or surrendered. It contains details of stocks, assets, and liabilities of the taxpayer at the time of cancellation or surrender of registration. Form GSTR-3B is a monthly self-declaration return filed by a taxpayer registered under Goods and Services Tax, containing details of outward and inward supplies, input tax credit claimed, and tax paid. CBIC notifies Full Fee Waiver for delayed filing of GST Return Form GSTR-4 with Nil Tax Payable The Central Board of Indirect Taxes and Customs ( CBIC ) has notified a full fee waiver for the delayed filing of the Goods and Services Tax ( GST ) Return, Form GSTR-4 with nil tax payable. GSTR-4 is a GST Return that has to be filed by a composition dealer. Unlike a normal taxpayer who needs to furnish 3 monthly returns, a dealer choosing the composition scheme has to furnish only the Form GSTR-4 once in a year by 30th of April, after a financial year. CBIC Notifies Exemption from Deposits in ECL for Specified goods u/s 51A(4) of Customs Act till 30th April, 2023 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: 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, – any duty of customs, including cesses and surcharges levied as duties of customs; integrated tax; Goods and Service Tax Compensation Cess; interest, penalty, fees or any other amount payable under the Act, or Customs Tariff Act, 1975 (51of 1975). CBIC notifies New Procedure for Revocation of Cancellation of GST Registration The Central Board of Indirect Taxes and Customs (CBIC), by the Notification Nos. 02-07/2023, has notified many amendments to the Central Goods and Services Tax Act, 2017 and Central Goods and Services Tax Rules, 2017, in which the new procedure for revoking cancelled GST registration has been introduced. The 49th GST Council Meeting Chaired by Union Finance Minister Nirmala Sitharaman had recommended an extended time limit for application for revocation of cancellation of GST registration and one time amnesty for past cases. The Council had recommended amendment in section 30 of CGST Act, 2017 and rule 23 of CGST Rules, 2017 so as to provide that, the time limit for making an application for revocation of cancellation of registration be increased from 30 days to 90 days. CBIC notifies Phased Implementation of Electronic Cash Ledger (ECL) in Customs from April 1 The Central Board of Indirect Taxes and Customs (CBIC) has notified the phased implementation of Electronic Cash Ledger (ECL) in the Customs Regime from April 1 onwards. The Customs Electronic Cash Ledger (ECL) functionality is envisaged in Section 51A of the Customs Act, 1962. It provides an enabling provision whereby the importer, exporter or any person liable to pay duty, fees etc., under the Customs Act, has to make a non-interest bearing deposit with the Government for the purpose of payment. The Customs (Electronic Cash Ledger) Regulations, 2022 (ECLR) notified vide No. 20/2022-Customs (N.T) dated 30.03.2022 governs the manner of operationalization of ECL and related aspects. The statutory provision came into force on 01.06.2022. CBIC Clarifies Classification and GST Rate of ‘Rab’ on basis of 49th GST Council Recommendation According to the GST Council’s suggestion at its 49th meeting, which was conducted on February 18, 2023, the CBIC clarified the Goods and Services Tax (GST) rate and the classification of “Rab” in Circular No. 191/03/2023-GST, dated March 27, 2023. Rab would henceforth be subject to a 5% GST charge when sold in a pre-packaged and labelled container and a 0% GST rate when sold in a container other than one, as per the GST Council’s recommendation at its 49th meeting, which was conducted on February 18th, 2023. In addition, in accordance with the GST Council’s proposal in the aforementioned meeting, the issue for the prior period is hereby regularised on a “as is” basis due to the prevalent conflicting interpretations and genuine questions over the applicability of the GST rate on Rab. CBIC reminds Taxpayers of the Due Date for Payment of Central Excise Duty for March 2023 The Central Board of Indirect Taxes and Customs (CBIC), in a recent tweet reminded the manufacturers registered under Central Excise Act, 1944 to “Please note, the Due Date for Payment of Excise Duty for the goods cleared during the month of March, 2023 is 31st March”. Users can make online payment of excise duty and service tax through Automation of Central Excise and Service Tax (ACES) by Central Board of Excise and Customs (CBEC). To make online payment, users are required to have a net banking account with any of the banks enlisted with CBEC. CBIC releases Instruction on Demarcation of Role of CIU in Custom House in Relation to Anti-Smuggling Work Regarding the division of the Central Intelligence Unit’s (“CIU”) duty in a Custom House in relation to anti-smuggling activities, the CBIC has issued Instruction No. 12/2023 dated March 27, 2023. Examining references from the industry and stakeholders, it was found that different customs field formations had different practices for dividing work involving anti-smuggling cases between the Special Intelligence and Investigation Unit (SIIB) and the Central Intelligence Unit (CIU). The Board has examined the situation. The Board has decided that insofar as any anti-smuggling work, including in detecting irregularities in commercial cases involving loss of revenue or violation of any prohibition/restriction on import or export of goods, where case investigated has a vigilance aspect or angle, it should be the CIU who interviews the suspects. This is in light of precedent and keeping in mind developments over time, as well as acknowledging the need for specialisation and exclusivity of work. CBIC releases Instructions of Service Tax Payment by Department of Posts and Railway by way of Book Adjustment The Central Board of Indirect Taxes and Customs (CBIC) has published instructions for the payment of service tax by the Ministry of Railways and the Department of Posts via book adjustments under CBIC-240137/20/2022-Service Tax dated March 21, 2023. According to the release, the board had suggested earlier that the Department of Posts and the Ministry of Railways’ practise of paying service tax through book adjustments was causing inaccurate accounting and reporting because the tax payments couldn’t be reconciled by the CBIC field units. Additionally, the book adjustment approach made it impossible to conduct audits since it was unable to separate service- and jurisdiction-specific service tax obligations. CBIC notifies Foreign Currency Conversion Rates for Import and Export of Goods effective from March 17, 2023 The Central Board of Indirect Taxes and Customs ( CBIC ) has notified the redetermined rates of exchange of conversion of foreign currencies for import and export of goods effective from 17-03-2023. Boarding Officer to Improve Boarding Function Transparency by Boarding Jackets Fitted with Body Worn Camera (BWC): CBIC A recent circular from the Central Board of Indirect Tax and Customs ( CBIC ) has issued guidelines relating to the boarding of vessels by Customs Officers which has decided to improve the transparency of boarding functions by the officers with the help of boarding jackets fitted with body-worn cameras ( BWC ) which have audio and video recording facilities. The officers of Nhava Sheva and Ahmedabad Customs Zones had implemented, this facility while carrying out duties on board the vessels since August 2022. Based on the feedback received from these Zones, the Board has now decided to extend the use of this facility from 15.04.2023 with respect to the sea customs functions. CBIC Clarifies Implementation of Origin Procedures under India – Australia ETCA Regarding the implementation of origin procedures under the India-Australia Economic Cooperation and Trade Agreement (“ECTA”), the Central Board of Indirect Taxes and Customs (CBIC) issued Instruction No. 10/2023-Customs on March 10, 2023.. The Board has also been constantly reminded of a few nuances regarding the implementation of ROO and OCP under the India-Australia ECTA Requires Health Certificate with Food Import Consignments : CBIC instructs Regarding the extension of the requirement that a Health Certificate be included with the import of food consignments, the Central Board of Indirect Taxes and Customs CBIC) has issued Instruction No. 8/2023-Customs dated March 03, 2023. Refer to Board Instruction No. 18/2022-Customs dated August 12, 2022, as well as Nos. 26/2022-Customs dated October 6, 2022, 32/2022-Customs dated November 28, 2022, and 04/2023-Customs dated January 27, 2023, for more information on the need for a health certificate to be included with the import of certain food consignments. As per the instruction, regarding the instant case, the FSSAI Order dated February 24, 2023 has informed that, considering the representations from various countries and other stakeholders, the implementation of the FSSAI’s order issued is deferred till further orders. Additional Assistant Director exercise the power of Superintendent under Service Tax: CBIC Notifies Central Board of Indirect Taxes and Customs (CBIC) issued the Notification No 01/2023 – Service Tax dated March 2, 2023 notifies that the Additional Assistant Director will exercise the power of the superintendent under the service tax. The CBIC amended the notification issued by the Ministry of Finance in 2014 in accordance with the authority granted by section 2(b) of the Central Excise Act, 1944 (1 of 1944), rule 3 of the Central Excise Rules, 2017, rule 3 of the Service Tax Rules, 1994, and sections 174(2)(e) and (f) of the Central Goods and Services Tax Act, 2017 (12 of 2017). The Notification No. 22/2014- Service Tax dated September 16, 2014, appointed the certain officers in the Directorate General of Audit (“DGA”), Directorate General of Central Excise Intelligence (“DGCEI”) and Directorate General of Service Tax (“DGST”) as Central Excise Officers. This amendment added a new SI. No. 49th GST Council Recommendation: CBIC notifies exemption on Tracking Device on Importation Containers Central Board of Indirect Taxes and Customs ( CBIC ) issued a Notification No. 14/2023-Customs dated February 28, 2023 allowing exemption on affixed tracking devices on the containers at the time of import. The notification was based on the recommendation of the 49th Goods and Services Tax ( GST ) council meeting presided by the Union Finance Minister Nirmala Sitharaman held on February 18th 2023. CBIC Notifies Exemption as per GST Council’s Recommendation on Coal Rejects Supplied to/By Coal Washery The exemption on coal rejects provided to or by coal washeries was approved by the council for the 49th Goods and Service Tax ( GST ). In order to implement the suggestions made at the 49th GST Council Meeting held on February 18, 2023, the Central Board of Indirect Taxes and Customs ( CBIC ) published Notification No. 1/ 2023-Compensation Cess (Rate) on February 28, 2023. This notification will take effect on March 1, 2023. The 49th meeting of the GST Council took place in Delhi on February 18, 2023, and was presided over by Smt. Nirmala Sitharaman, the Union Minister of Finance. The GST Council has recommended that both coal rejects provided to and supplied by a coal washery, resulting from coal on which Compensation Cess has been paid and no Input Tax Credit (“ITC”) thereto has been claimed by anyone, be covered by the exemption benefit. CBIC notifies GST Applicable to Courts and Tribunals and other GST Amendments The Central Board of Indirect Taxes and Customs (CBIC) has notified the Goods and Services Tax (GST) applicable to certain services provided by the courts and tribunals of the country. The notification also gives legislative effect to some other decisions of the 49th Goods and Services Tax Council Meeting. DIGIT, official repository of Customs Act Violations: CBIC Notifies Completion of Data Entry on Official Website Instruction No. 07/2023-Customs, dated February 28, 2023, was issued by the Central Board of Indirect Taxes and Customs (CBIC) on the completion of data entry in the DRI Intelligence Gathering and Investigation Tool (DIGIT) on the CBIC website. Regarding the completion of data entry in DIGIT, the notification referred to the earlier CBIC order No. 06/2018-Customs from April 2, 2018. All formations were instructed to complete data entry in DIGIT by March 31, 2018, in accordance with aforementioned directives. All Show Cause Notices (SCNs) and Orders in Original must be uploaded on DIGIT as of April 1, 2018. CBIC notifies Revised GST Rates and Customs Duties with Immediate Effect The Central Board of Indirect Taxes and Customs (CBIC) has notified the revised Goods and Services Tax (GST) rates and Customs duties as per the recommendations of the GST Council Meeting (Read Key Highlights). The revision notification revises the rate of Rab, other than pre-packaged and labelled(Liquid Jaggery), “Jaggery of all types including Cane Jaggery (gur), Palmyra Jaggery, pre-packaged and labelled; Khandsari Sugar, pre-packaged and labelled; Rab, pre-packaged and labelled, Pencil Sharpeners, Coal rejects supplied to a coal washery or by a coal washery, arising out of coal on which compensation cess has been paid and input tax credit thereof has not been availed by any person and A device such as tag, tracking device or data logger already affixed on the container at the time of import shall also be eligible for exemption from the duty of customs and the integrated tax as is available to the said container under this notification.” CBIC releases Sampark 2023 containing Contact Information of CBIC Officials The Central Board of Indirect Taxes and customs has released Sampark 2023. Sampark is the consolidated source of CBIC officials’ contact information, facilitating collaboration and ease-of-connect between departments and its officials. It also provides officials with an organizational layout that allows them to better comprehend the organization’s hierarchy. CBIC notifies BCD Exemption on Vessels and other Floating Structures for Breaking up The current notification is to exempt the Basic Customs Duty (BCD) on Vessels and other Floating Structures for Breaking up under the heading 8908 00 00. The exemption lasts till March 31st, 2025 from February 24rd 2023. Basic custom duty is a tax that is assessed at a set rate based on the value of the goods. The tax is set at a predetermined ad-valorem rate. The Customs Tariff Act of 1975 now governs this tax, which was first levied in 1962 and periodically revised. Any item may be excluded from taxation at the discretion of the central government. From 5% to 40% of the assessable value of the imported goods is the basic customs duty. CBIC amends Form A: Warehouse Licensee to maintain details of Ex-bond Bill of Entry/ Shipping Bill The Central Board of Indirect Taxes and Customs (CBIC) amended the old circular and issued a new Circular No. 04/2023-Customs on February 21, 2023. The amendment was to add the information about the ex-bond bills of entry and shipping bills to Form A. It was stated that the warehouse licensees must keep track of the receipt, handling, storage, and removal of the warehoused goods. In order to record information about receipts, handling, storage, and removal of warehoused items, the Circular No. 25/2016-Customs, dated June 8, 2016, specified “Form A” for record-keeping. It has been noted that the aforementioned form does not expressly collect information from an ex-bond bill of entry or a shipping bill when products are taken out of the warehouse for domestic use or export, respectively. Unreasonable delays in Antecedent Verifications: CBIC issues circular to complete verification within 45 days The Central Board of Indirect Taxes & Customs (CBIC) noticed unreasonable delay in the antecedent verifications at certain field information. Thus, the board amended the old circular and inserted that the antecedent verification must be completed within 45 days of receipt of the application. Circular No. 26/2016-Customs, dated June 09, 2016, which provided for a centralised system of antecedent verification of licence applicants under the Public Warehousing Licensing Regulations, 2016, Private Warehousing Regulations, 2016, and Special Warehousing Regulations, 2016, was amended by the Central Board of Indirect Taxes & Customs (CBIC) with Circular No. 05/2023-Customs, dated February 21, 2023, in order to further provide that the antecedent verification must be completed within 45 days of receipt of the application. CBIC issues BIS compliance Instructions for Importing Toys and parts of Toys The Central Board of Indirect Taxes and Customs issued an Instruction No.06/2023 dated February 14, 2023 to strengthen the compliance with the prescribed Bureau of Indian Standards (BIS) Standards. The instruction stipulates that in order to prevent violations of the Toys Quality Control Order, the field formations and directorates must take the required action (QCO). Correspondingly, the BIS has made the list of BIS licensees of domestic makers and international suppliers of toys available via their website and mobile app, facilitating the verification to prevent infringement of the Toys QCO. CBIC notifies Revised Customs Duty Rates as per Union Budget 2023 The Central Board of Indirect Taxes and Customs (CBIC) has notified the revised custom duty rates as per the proposals in the Union Budget 2023. In regard to exemption of blended CNG, the following conditions were laid down that the manufacturers of such blended CNG shall: (i) maintain detailed records regarding the quantum of Biogas or CBG blended with CNG, along with the value thereof, at the registered premises; (ii) submit a reconciliation statement, certified by the statutory auditor to the jurisdictional Commissioner of Central Excise by 10th of the month following every quarter; and (iii) pay the short-paid duty of excise along with applicable interest after such reconciliation. CBIC notifies extension of Health Certificate mandated with import of food consignments The Central Board of Indirect Taxes and Customs ( CBIC ) has recently notified the extension of the mandatory requirement to carry a health certificate with the import of food consignments, in reference to an order of Food Safety and Standards Authority of India. In reference to the Board’s Instruction No 18/2022-Customs dated Instruction No 30/2022-Customs dated 14.1 1.2022 and Instruction No 32/2022-Customs dated 28.11.2022 relating to the requirement of Health Certificate to be accompanied with the import of certain food consignments, based on a reference from FSSAI order dated 03.08.2022 and its subsequent clarification dated 26.09.2022 the following instruction was released by the CBIC. The board, in light of the FSSAI order that extended the date of implementation of the health certificate mandate for a further period of two months, said that the same will now be effective from 1st March, 2023. CBIC instructs to implement holding of export quotas of Sugar Mills as per DFPD Letter The Central Board of Indirect Taxes and Customs (CBIC) has recently released instructions regarding reallocation and holding of export quotas of sugar mills. A restriction imposed by a government on the amount or number of goods or services that may be exported within a given period is usually done with the intent of keeping prices of those goods or services low for domestic users. By a letter dated 23.01.2023, the Department of Food & Public Distribution (DFPD), Ministry of Consumer Affairs, Food & Public Distribution has informed about cancellation of the following sugar mills till further orders in reference to its 8th & 9th Reallocation of Export Quota for export during Sugar Season 2022-23 and holding of export quota earlier allowed. No Customs Duty on Import of Covid-19 Vaccine to India by Central/State Govts: CBIC The Central Board of Indirect Taxes and Customs (CBIC) has notified that the import of covid-19 vaccine to India by the Central and State Governments is exempted from the levy of the customs duty till 31st March, 2023. In a notification published in the e-gazzatte on Friday stated that “In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the goods of the description specified in column (3) of the Table below, falling within the Chapter, heading, sub–heading or tariff item of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) specified in column (2) of the said Table, when imported into India by Central Government or State Governments, from the whole of the duty of customs leviable thereon under the said First Schedule, namely, “COVID-19 vaccine.” CBIC Clarifies GST rates of Certain Goods as Recommended by GST Council The Central Board of Indirect Taxes and Customs (CBIC) has issued a circular clarifying GST rates and classification of certain goods based on the recommendations of the GST Council in its 48th meeting held on 17th December, 2022. The CBIC circular issued today clarified that Rab is appropriately classifiable under heading 1702 attracting GST rate of 18% (S. No. 11 in Schedule III of notification No. 1/2017-Central Tax (Rate), dated the 28th June, 2017). Regarding the applicable GST rate on by-products of milling of Dal/ Pulses such as Chilka, Khanda and Churi/Chuni, the CBIC clarified that “the GST council in its 48th meeting has recommended to fully exempt the supply of subject goods, irrespective of its end use. Hence, with effect from the 1st January, 2023, the said goods shall be exempt under GST vide S. No. 102C of schedule of notification No. 2/2017- Central Tax (Rate), dated 28.06.2017.” Levy Anti-Dumping Duty on Fishing Net Imported from China Extended till 9th July, 2023: CBIC The Central Board of Indirect Taxes and Customs (CBIC) has extended the levy of anti-dumping duty on the product “fishing net” imported from China till 9th July 2023. CBIC Notifies Customs (Assistance in Value Declaration of Identified Imported Goods) Rules The Central Board of Indirect Taxes and Customs (CBIC) has notified the Customs (Assistance in Value Declaration of Identified Imported Goods) Rules, 2023. As per the rules notified on Wednesday, for the purposes of clause (iv) of the second proviso to subsection (1) of section 14 of the Act, where in respect of any class of imported goods or a subset thereof, the Board, having regard to the trend of the declared value of such goods or any other relevant criteria, has reason to believe that such goods may not be declared at their truthful or accurate value but below it, the Board may, by an Order, specify such goods as identified goods in accordance with rule 10. The Screening Committee shall make a preliminary examination of the written reference forwarded by the Board under sub-rule (3) of rule 6, in order to decide whether it, or part thereof, is a case to be taken up for detailed examination. CBIC issues Instructions on Implementation of E-Waste (Management) Rules, 2022 The Central Board of Indirect Taxes and Customs ( CBIC ) has issued instructions regarding the implementation of E-Waste (Management) Rules, 2022 in supersession of E-Waste (Management) Rules, 2016. The Ministry of Environment, Forest and Climate Change, New Delhi has informed that the Ministry of Environment, Forest and Climate Change has notified the E-Waste (Management) Rules, 2022 in supersession of E-Waste (Management) Rules, 2016 vide notification dated November 02, 2022 (Copy enclosed) and these shall come in to force from April 01, 2023. New rules have introduced the concept of a modified Extended Producer Responsibility (EPR) and focus completely on a market-based model and for procedures to be online and seamless. CBIC Notifies Modified Special Additional Excise Duty on production of Petroleum Crude and export of Aviation turbine Fuel The Central Board of Indirect Taxes and Customs ( CBIC ) has issued a notification to modify the Special Additional Excise Duty on production of Petroleum Crude and export of Aviation turbine Fuel. A notification issued on Monday stated that “In exercise of the powers conferred by section 5A of the Central Excise Act, 1944 (1 of 1944) read with section 147 of the Finance Act, 2002 (20 of 2002), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 18/2022-Central Excise, dated the 19th July, 2022, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 584 (E), dated the 19th July, 2022, namely:- In the said notification, in the Table,- (i) against S. No. 1, for the entry in column (4), the entry “Rs. 2,100 per tonne” shall be substituted; (ii) against S. No. 2, for the entry in column (4), the entry “Rs. 4.50 per litre” shall be substituted.” Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates

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