For the purpose of charging excise duty on computers, the value of
pre-loaded software will be excluded.
Rope, twine and similar items are being exempted from excise duty.
It has been provided that a manufacturer will be required to reverse
only that portion of credit which was availed of by him at the time of receipt of inputs /
capital goods in his factory, when such inputs or capital goods are cleared as such from
the factory.
A new section 11DD is being inserted enabling recovery of interest on
the amount recoverable under section 11D of the Central Excise Act.
Section 13 of Central Excise Act has been amended to provide that
power of arrest can be exercised by a Central Excise Officer, not below the rank of
Inspector, only with prior approval of the Commissioner.
The jurisdictional DC / AC have been permitted to allow manufacturers
to store inputs, in respect of which credit of duty has been taken, outside the factory,
subject to suitable safeguards.
Full rebate of excise duty paid on petroleum products exported as
stores for consumption on board an aircraft on foreign run has been allowed.
Interest on advance deposit not to be included in the case of goods
made to specification of the buyer unless there is specific evidence that such deposit has
the effect of lowering the price.
The Finance Act, 1989 is being amended to provide for punishment of
specified persons if the carrier fails to pay the Inland Air Travel Tax collected from the
passengers to the credit of the Central Government.
The existing provision of prior approval of show cause notice by the
Chief Commissioner / Commissioner is being withdrawn and the earlier position of approval
by the proper officer is being restored.
The provisions regarding appeal to the High Court are being modified
so as to provide that in respect of appeals against orders of the Tribunal passed on or
after 1.7.2003, the High Court, instead of referring the issue to the Tribunal, will
itself formulate the question of law and decide.
The name of the Customs, Excise and Gold (Control) Appellate Tribunal
is being changed to Customs, Excise and Service Tax Appellate Tribunal.
The jurisdiction of the Advance Ruling Authority is being expanded so
that it can decide on matters of Service tax, Cenvat credit, and all notifications under
the Customs Act, Central Excise Act, and notifications issued under the Finance Acts.
Scope of applicability is also being widened.
It is being provided that interest will be payable in respect of
drawback claims after one month as against two months now.
Section 7 of the Customs Act, 1962 is being amended so as to delegate
the powers of the Central Government to the Board for appointment of customs ports /
airports / ICDs etc.
Section 15(I)(b) of the Customs Act is proposed to be amended so as
to provide that the relevant date for determination of rate of duty on home clearance of
warehoused goods would be the date of presentation of the ex-bond bill of entry for home
consumption.
Section 25 of the Customs Act, 1962 is proposed to be amended to
provide that no duty will be collected if the total amount of duty leviable is Rs.100 or
less.
Section 25(2) of the Customs Act is being amended so as to restore
the powers to the Central Government to issue ad hoc exemption orders in circumstances of
an exceptional nature.
Section 27(2) of the Customs Act is being amended to enable an
exporter to claim refund of duty and interest subject to the provisions of unjust
enrichment.
Section 30 of the Customs Act is proposed to be amended to provide
for delivery of import manifest before the arrival of vessel or aircraft and within 12
hours of arrival of a vehicle, and for levy of penalty not exceeding Rs. 50,000 if there
is no sufficient cause for the delay.
Section 61(1) of the Customs Act is being amended to provide that the
period of warehousing in respect of goods (other than capital goods) intended for use in
100% EOUs will be increased from 1 year to 3 years.
Section 61(2) of the Customs Act is being amended so as to increase
the interest free period for warehoused goods from 30 days to 90 days.
Section 68 of the Customs Act is being amended so as to enable the
owner of any warehoused goods to relinquish his title to the goods on payment, rent, etc
at any time before an order for clearance of these goods for home consumption has been
made. On his relinquishing title, the importers will not be liable to pay duty on such
goods.
Section 113 of the Customs Act is being amended so as to provide that
this section applies to offences in relation to all exports, and not on dutiable or
prohibited exports only.
Section 28 of the Customs Act is being amended so as to omit the
requirement of prior approval of show cause notice by the Commissioner or the Chief
Commissioner.
Section 28E and 28H of the Customs Act are being amended so as to
provide that advance ruling may also be sought in respect of all notifications under the
Customs Tariff Act and any other duty chargeable as customs duty .It is also proposed to
allow wholly-owned subsidiary Indian company of a foreign company to avail the benefit of
advance ruling.
At present, interest is payable to exporters only if the duty
drawback admissible is not paid within a period of two months from the date of filing of
the drawback claim. Section 75A(1) of Customs Act, 1962 is being amended so as to reduce
this period from two months to one month.
Section 114 is being amended for imposing penalty for export offences
involving both prohibited and non prohibited goods.
Section 122 of the Customs Act, 1962 is being amended so as to raise
the powers of adjudication of the Assistant / Deputy Commissioners of Customs from the
existing limit of Rs. 50,000 to Rs. 2,00,000. Likewise, the powers of adjudication of a
Gazetted Officer of customs lower in rank than an Assistant Commissioner of Customs is
proposed to be increased from Rs.2,500 to Rs.10,000.
The Customs Act is being amended to provide that in respect of
appeals filed against the order of CEGAT passed on or after 1.7.2003, the High Court will
formulate the question of law instead of referring the matter to the Tribunal.
Section 135 of the Customs Act is being amended so as to provide for
prosecution in cases of mis-declaration of value and of fraudulent exports.
Section 136 of the Customs Act is being amended so as to provide for
prosecution of officers of Customs who connive at any act or thing whereby any fraudulent
export is effected.
The time period for fulfilling the export obligation in terms of
specified EPCG licenses, where the licence holders were affected by the earthquake in
Gujarat, is being extended up to 31.3.2004.
The rate of interest in respect of specified notifications relating
to export promotion schemes is being reduced to 15% with retrospective effect.
