SECTIONWISE ANALYSIS – CUSTOMS AMENDMENTS

CUSTOMS AMENDMENTS – HIGHLIGHTS AT A GLANCE

1. Amendment in Section 11(2)(f) under Chapter IV of Custom Act 1962

Source

Clause 105 of the Finance Bill,2020.

Effective Date

Date to be notified by the government.

Affected Provision

Section 11(2)(f) of the Customs Act, 1962.

Provision before amendment

(1) If the Central Government is satisfied that it is necessary so to do for any of the purposes specified in sub-section (2), it may, by notification in the Official Gazette, prohibit either absolutely or subject to such conditions (to be fulfilled before or after clearance) as may be specified in the notification, the import or export of goods of any specified description.

(2) The purposes referred to in sub-section (1) are the following:-

(f) the prevention of injury to the economy of the country by the uncontrolled import or export of gold or silver.

Provision after Amendment

(2) The purposes referred to in sub-section (1) are the following:-

(f) the prevention of injury to the economy of the country by the uncontrolled import or export of gold or silver or any other goods.

Effect of the Amendment

To prevent the injury to the economy of the country, the Central Government may prohibit either absolutely or conditionally uncontrolled import or export of other goods apart from gold or silver also.

2. Amendment in section 28 of Chapter V of Custom Act 1962

Source

Clause 106 of the Finance Bill,2020.

Effective Date

Date to be notified by the government.

Affected Provision

Section 28 Explanation 4 of the Customs Act, 1962

Provision before amendment

Explanation 4.—For the removal of doubts, it is hereby declared that in cases where notice has been issued for non-levy, not paid, short-levy or short-paid or erroneous refund after the 14th day of May 2015, but before the date on which the Finance Bill, 2018 receives the assent of the President, they shall continue to be governed by the provisions of section 28 as it stood immediately before the date on which such assent is received.

Provision after Amendment

Explanation 4.—For the removal of doubts, it is hereby declared that notwithstanding anything to the contrary contained in any judgment, decree or order of the Appellate Tribunal or any Court or in any other provision of this Act or the rules or regulations made thereunder, or in any other law for the time being in force, in cases where notice has been issued for non-levy, short-levy, non-payment, short-payment or erroneous refund, prior to the 29th day of March 2018, being the date of commencement of the Finance Act, 2018, such notice shall continue to be governed by the provisions of section 28 as it stood immediately before such date.

Effect of the Amendment

1. With the insertion of clause 106, Explanation 4 of section 28 of the Customs Act shall override any judgment, decree or order of the Appellate Tribunal or any Court or in any other provisions of this Act or the rules or regulations made thereunder or in any other law which contains anything contrary.

2. This amendment shall come into effect retrospectively from the 29th day of March 2018. 3. If notice is issued prior to 29/3/2018, then such notice shall continue to be governed by the provisions of section 28.

Related Topic:
Basic Provisions of Customs Law and Taxability of Import of Goods

3. Amendment in Section 28AAA under Chapter V of Custom Act 1962

Source

Clause 107 of the Finance Bill, 2020.

Effective Date

Date to be notified by the government.

Affected Provision

Section 28AAA of the Customs Act, 1962

Provision before amendment

Recovery of duties in certain cases. —

(1) Where an instrument issued to a person has been obtained by him by means of —

a) Collusion, or,

b) Wilful misstatement, or,

c) Suppression of facts,

for the purposes of this Act or the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992), by such person or his agent or employee and such instrument is utilized under the provisions of this Act or the rules made or notifications issued thereunder, by a person other than the person to whom the instrument was issued, the duty relatable to such utilization of instrument shall be deemed never to have been exempted or debited and such duty shall be recovered from the person to whom the said instrument was issued.

Explanation 1.— For the purposes of this sub-section, “instrument” means any scrip or authorization or license or certificate or such other document, by whatever name called, issued under the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992), with respect to a reward or incentive scheme or duty exemption scheme or duty remission scheme or such other scheme bestowing financial or fiscal benefits, which may be utilized under the provisions of this Act or the rules made or notifications issued thereunder.

Provision after Amendment

Recovery of duties in certain cases. —

(1) Where an instrument issued to a person has been obtained by him by means of —

a) Collusion, or,

b) Wilful misstatement, or,

c) Suppression of facts,

for the purposes of this Act or the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992), or any other law, or any scheme of the Central Government, for the time being in force, by such person or his agent or employee and such instrument is utilized under the provisions of this Act or the rules or regulations made or notifications issued thereunder, by a person other than the person to whom the instrument was issued, the duty relatable to such utilization of instrument shall be deemed never to have been exempted or debited and such duty shall be recovered from the person to whom the said instrument was issued.

Explanation 1.— For the purposes of this sub-section, “instrument” means any scrip or authorization or license or certificate or such other document, by whatever name called, issued under the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992), or duty credit issued under section 51B, with respect to a reward or incentive scheme or duty exemption scheme or duty remission scheme or such other scheme bestowing financial or fiscal benefits, which may be utilized under the provisions of this Act or the rules made or notifications issued thereunder.

Effect of the Amendment

For the purpose of protecting the interests of revenue of the government proper officer may with the prior approval of Principal Commissioner of Customs or Commissioner of Customs recover the duty against “instrument” also issued under any other law, or under any scheme of the Central Government, for the time being in force, in addition to the Foreign Trade (Development and Regulation) Act, 1992.

Here it expanded the scope of the term “instrument” to include duty credit issued under section 51B.

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