Extract of THE FINANCE ACT, 2018
No. 13 of 2018
[28th March, 2018.]
An Act to give effect to the financial proposals of the Central Government for the financial year 2018-2019.
Be it enacted by Parliament in the Sixty-ninth Year of the Republic of India as follows:
CHAPTER I
Preliminary
1. short title and commencement
(1) This Act may be called the Finance Act, 2018.
(2 ) Save as otherwise provided in this Act, sections 2 to 55 shall come into force on, the 1st day of April, 2018.
CHAPTER IV
INDIRECT TAXES
CUSTOMS
56. Substitution of references to certain expressions by certain other expressions.
Throughout the Customs Act, 1962 (52 of 1962.) (hereinafter referred to as the Customs Act), for the words "import manifest" and "export manifest", wherever they occur, the words "arrival manifest or import manifest" and "departure manifest or export manifest" shall, respectively, be substituted, and such other consequential amendments as the rules of grammar may require shall also be made.
57. Amendment of section 1.
In the Customs Act, in section 1, in sub-section (2), after the word "India", the words "and, save as otherwise provided in this Act, it applies also to any offence or contravention thereunder committed outside India by any person" shall be inserted.
58. Amendment of section 2.
In the Customs Act, in section 2,-
(i) for clause (2), the following clause shall be substituted, namely:-
'(2) "assessment" means determination of the dutiability of any goods and the amount of duty, tax, cess or any other sum so payable, if any, under this Act or under the Customs Tariff Act, 1975 (51 of 1975.) (hereinafter referred to as the Customs Tariff Act) or under any other law for the time being in force, with reference to,-
(a) the tariff classification of such goods as determined in accordance with the provisions of the Customs Tariff Act;
(b) the value of such goods as determined in accordance with the provisions of this Act and the Customs Tariff Act;
(c) exemption or concession of duty, tax, cess or any other sum, consequent upon any notification issued therefor under this Act or under the Customs Tariff Act or under any other law for the time being in force;
(d) the quantity, weight, volume, measurement or other specifics where such duty, tax, cess or any other sum is leviable on the basis of the quantity, weight, volume, measurement or other specifics of such goods;
(e) the origin of such goods determined in accordance with the provisions of the Customs Tariff Act or the rules made thereunder, if the amount of duty, tax, cess or any other sum is affected by the origin of such goods;
(f) any other specific factor which affects the duty, tax, cess or any other sum payable on such goods,
and includes provisional assessment, self-assessment, re-assessment and any assessment in which the duty assessed is nil;';
(ii) in clause (6), for the words "Central Board of Excise and Customs", the words "Central Board of Indirect Taxes and Customs" shall be substituted;
(iii) in clause (28), for the words and figure "contiguous zone of India under section 5", the words and figure "Exclusive Economic Zone under section 7" shall be substituted;
(iv) after clause (30A), the following clause shall be inserted, namely:-
'(30AA) "notification" means notification published in the Official Gazette and the expression "notify" with its cognate meaning and grammatical variation shall be construed accordingly;'.
59. Amendment of section 11.
In the Customs Act, in section 11, after sub-section (2), the following sub-section shall be inserted with effect from such date as the Central Government may, by notification in the Official Gazette, appoint, namely:-
"(3) Any prohibition or restriction or obligation relating to import or export of any goods or class of goods or clearance thereof provided in any other law for the time being in force, or any rule or regulation made or any order or notification issued thereunder, shall be executed under the provisions of that Act only if such prohibition or restriction or obligation is notified under the provisions of this Act, subject to such exceptions, modifications or adaptations as the Central Government deems fit".
60. Amendment of section 17.
In the Customs Act, in section 17,-
(i) in sub-section (2),-
(a) for the words "the self-assessment of such goods", the words, figures and brackets "the entries made under section 46 or section 50 and the selfassessment of goods referred to in sub-section (1)" shall be substituted;
(b) the following proviso shall be inserted, namely:-
"Provided that the selection of cases for verification shall primarily be on the basis of risk evaluation through appropriate selection criteria.";
(ii) in sub-section (3), for the words "verification of self-assessment", the words "the purposes of verification" shall be substituted;
(iii) in sub-section (5), the words "regarding valuation of goods, classification, exemption or concessions of duty availed consequent to any notification issued therefor under this Act" shall be omitted;
(iv) sub-section (6) shall be omitted.
61. Amendment of section 18.
In the Customs Act, in section 18,-
(i) in sub-section (1), in the opening portion, after the word and figures "section 46", the words and figures "and section 50" shall be inserted;
(ii) after sub-section (1), the following sub-section shall be inserted, namely:-
"(1A) Where, pursuant to the provisional assessment under sub-section (1), if any document or information is required by the proper officer for final assessment, the importer or exporter, as the case may be, shall submit such document or information within such time, and the proper officer shall finalise the provisional assessment within such time and in such manner, as may be prescribed.";
(iii) in sub-section (3), for the figures and letters "28AB", the figures and letters "28AA" shall be substituted and shall be deemed to have been substituted retrospectively with effect from the 8th day of April, 2011.
62. Insertion of new sections 25A and 25B.
In the Customs Act, after section 25, the following sections shall be inserted, namely:-
"25A. Inward processing of goods.
Where the Central Government is satisfied that it is necessary in the public interest so to do, it may, by notification, exempt such of the goods which are imported for the purposes of repair, further processing or manufacture, as may be specified therein, from the whole or any part of duty of customs leviable thereon, subject to the following conditions, namely:-
(a) the goods shall be re-exported after such repair, further processing or manufacture, as the case may be, within a period of one year from the date on which the order for clearance of the imported goods is made;
(b) the imported goods are identifiable in the export goods; and
(c) such other conditions as may be specified in that notification.
25B. Outward processing of goods.
Notwithstanding anything contained in section 20, where the Central Government is satisfied that it is necessary in the public interest so to do, it may, by notification, exempt such of the goods which are re-imported after being exported for the purposes of repair, further processing or manufacture, as may be specified therein, from the whole or any part of duty of customs leviable thereon, subj ect to the following conditions, namely:-
(a) the goods shall be re-imported into India after such repair, further processing or manufacture, as the case may be, within a period of one year from the date on which the order permitting clearance for export is made;
(b) the exported goods are identifiable in the re-imported goods; and
(c) such other conditions as may be specified in that notification.".
63. Amendment of section 28.
In the Customs Act, in section 28,-
(i) in sub-section (1), in clause (a), the following proviso shall be inserted, namely:-
"Provided that before issuing notice, the proper officer shall hold prenotice consultation with the person chargeable with duty or interest in such manner as may be prescribed;";
(ii) after sub-section (7), the following sub-section shall be inserted, namely:-
"(7A) Save as otherwise provided in clause (a) of sub-section (1) or in sub-section (4), the proper officer may issue a supplementary notice under such circumstances and in such manner as may be prescribed, and the provisions of this section shall apply to such supplementary notice as if it was issued under the said sub-section (1) or sub-section (4).";
(iii) in sub-section (9),-
(a) the words "where it is possible to do so", at both the places where they occur, shall be omitted;
(b) the following provisos shall be inserted, namely:-
"Provided that where the proper officer fails to so determine within the specified period, any officer senior in rank to the proper officer may, having regard to the circumstances under which the proper officer was prevented from determining the amount of duty or interest under sub-section (8), extend the period specified in clause (a) to a further period of six months and the period specified in clause (b) to a further period of one year:
Provided further that where the proper officer fails to determine within such extended period, such proceeding shall be deemed to have concluded as if no notice had been issued.";
(iv) after sub-section (9), the following sub-section shall be inserted, namely:-
"(94) Notwithstanding anything contained in sub-section (9), where the proper officer is unable to determine the amount of duty or interest under sub-section (8) for the reason that-
(a) an appeal in a similar matter of the same person or any other person is pending before the Appellate Tribunal or the High Court or the Supreme Court; or
(b) an interim order of stay has been issued by the Appellate Tribunal or the High Court or the Supreme Court; or
(c) the Board has, in a similar matter, issued specific direction or order to keep such matter pending; or
(d) the Settlement Commission has admitted an application made by the person concerned,
the proper officer shall inform the person concerned the reason for nondetermination of the amount of duty or interest under sub-section (5) and in such case, the time specified in sub-section (9) shall apply not from the date of notice, but from the date when such reason ceases to exist.";
(v) after sub-section (10), the following sub-sections shall be inserted, namely:-
"(10A) Notwithstanding anything contained in this Act, where an order for refund under sub-section (2) of section 27 is modified in any appeal and the amount of refund so determined is less than the amount refunded under said sub-section, the excess amount so refunded shall be recovered along with interest thereon at the rate fixed by the Central Government under section 28AA, from the date of refund up to the date of recovery, as a sum due to the Government.
(10B) A notice issued under sub-section (4) shall be deemed to have been issued under sub-section (1), if such notice demanding duty is held not sustainable in any proceeding under this Act, including at any stage of appeal, for the reason that the charges of collusion or any wilful mis-statement or suppression of facts to evade duty has not been established against the person to whom such notice was issued and the amount of duty and the interest thereon shall be computed accordingly.";
(vi) after Explanation 3, the following Explanation shall be inserted, namely:-
"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.".
64. Amendment of section 28E.
In the Customs Act, in section 28E,-
(i) clause (a) shall be omitted;
(it) for clause (b), the following clause shall be substituted, namely:-
'(b) "advance ruling" means a written decision on any of the questions referred to in section 28H raised by the applicant in his application in respect of any goods prior to its importation or exportation;';
(iii) after clause (b), the following clause shall be inserted, namely:-
'(ba) "Appellate Authority" means the Authority for Advance Rulings constituted under section 245-0 of the Income-tax Act, 1961(43 of 1961);';
(iv) for clause (c), the following clause shall be substituted, namely:-
'(c) "applicant" means any person,-
(i) holding a valid Importer-exporter Code Number granted under section 7 ofthe Foreign Trade (Development and Regulation) Act, 1992; or 22 of 1992.
(ii) exporting any goods to India; or
(iii) with a justifiable cause to the satisfaction of the Authority,
who makes an application for advance ruling under section 28H;';
(v) for clause (e), the following clause shall be substituted, namely:-s
'(e) "Authority" means the Customs Authority for Advance Rulings appointed under section 28EA;';
(vi) in clause (f), for the word "Authority", the words "Appellate Authority" shall be substituted;
(vii) in clause (g), for the word "Authority", the words "Appellate Authority" shall be substituted.
65. Insertion of new section 28EA.
In the Customs Act, after section 28E, the following section shall be inserted, namely:-
"28EA. Customs Authority for Advance Rulings.
(1) The Board may, for the purposes of giving advance rulings under this Act, by notification, appoint an officer of the rank of Principal Commissioner of Customs or Commissioner of Customs to function as a Customs Authority for Advance Rulings:
Provided that till the date of appointment of the Customs Authority for Advance Rulings, the existing Authority for Advance Rulings constituted under section 245-0 43 of 1961. of the Income-tax Act, 1961 shall continue to be the Authority for giving advance
rulings for the purposes of this Act.
(2) The offices of the Authority may be established in New Delhi and at such other places, as the Board may deem fit.
(3) Subject to the provisions of this Act, the Authority shall exercise the powers and authority conferred on it by or under this Act.".
66. Amendment of section 28F.
In the Customs Act, in section 28F,-
(i) in sub-section (1),-
(a) in the opening paragraph, for the words "the Authority for giving advance rulings for the purposes of this Act and the said Authority", the words "the Appellate Authority for deciding appeal under this Chapter and the said Appellate Authority" shall be substituted;
(b) in the proviso, for the word "Authority", the words "Appellate Authority" shall be substituted;
(ii) after sub-section (2), the following sub-section shall be inserted, namely:-
"(3) On and from the date of appointment of the Customs Authority for Advance Rulings, every application and proceeding pending before the erstwhile Authority for Advance Rulings shall stand transferred to the Authority from the stage at which such application or proceeding stood as on the date of such appointment.".
67. Amendment of section 28H.
In the Customs Act, in section 28H,-
(a) for clause (d), the following clause shall be substituted, namely:-
"(d) applicability of notifications issued in respect of tax or duties under this Act or the Customs Tariff Act, 1975 (51 of 1975.) or any tax or duty chargeable under any other law for the time being in force in the same manner as duty of customs leviable under this Act or the Customs Tariff Act;";
(b) after clause (e), the following clause shall be inserted, namely:-
"(f) any other matter as the Central Government may, by notification, specify.";
(ii) after sub-section (4), the following sub-section shall be inserted, namely:-
'(5) The applicant may be represented by any person resident in India who is authorised in this behalf.
Explanation.- For the purposes of this sub-section "resident" shall have the same meaning as assigned to it in clause (42) of section 2 of the Income-tax Act, 1961 (43 of 1961.).'.
68. Amendment of section 28I.
In the Customs Act, in section 28-I, in sub-section (6), for the words "six months", the words "three months" shall be substituted.
69. Amendment of section 28K.
In the Customs Act, in section 28K, in sub-section (1),-
(i) the brackets and words "(after excluding the period beginning with the date of such advance ruling and ending with the date of order under this sub-section)" shall be omitted;
(ii) the following proviso shall be inserted, namely:-
"Provided that in computing the period of two years referred to in clause (a) of sub-section (1) of section 28, or five years referred to in sub-section (4) thereof, for service of notice for recovery of any duty not levied, short-levied, not paid or short-paid on account of the advance ruling, the period beginning with the date of such advance ruling and ending with the date of the order under this sub-section shall be excluded.".
70. Insertion of new section 28KA.
In the Customs Act, after section 28K, the following section shall be inserted with effect from such date as the Central Government may, by notification, appoint, namely:-
"28KA. Appeal.
(1) Any officer authorised by the Board, by notification, or the applicant may file an appeal to the Appellate Authority against any ruling or order passed by the Authority, within sixty days from the date of the communication of such ruling or order, in such form and manner as may be prescribed:
Provided that where the Appellate Authority is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within the period so specified, it may allow a further period of thirty days for filing such appeal.
(2) The provisions of sections 28-I and 28J shall, mutatis mutandis, apply to the appeal under this section.".
71. Amendment of section 28L.
In the Customs Act, in section 28L, for the word "Authority" wherever it occurs, the words "Authority or Appellate Authority" shall be substituted.
72. Substitution of new section for section 28M.
In the Customs Act, for section 28M, the following section shall be substituted, namely:-
"28M. Procedure for Authority and Appellate Authority.
(1) The Authority shall follow such procedure as may be prescribed.
(2) The Appellate Authority shall, subject to the provisions of this Chapter, have power to regulate its own procedure in all matters arising out of the exercise of its powers and authority under this Act.".
73. Amendment of section 30.
In the Customs Act, in section 30, in sub-section (1),-
(i) after the words "imported goods", the words "or export goods" shall be inserted;
(ii) for the words "the prescribed form", the words "such form and manner as may be prescribed" shall be substituted.
74. Amendment of section 41.
In the Customs Act, in section 41, in sub-section (1),-
(i) after the words "export goods", the words "or imported goods" shall be inserted;
(ii) for the words "the prescribed form", the following shall be substituted, namely:-
"such form and manner as may be prescribed and in case, the person-in-charge fails to deliver the departure manifest or export manifest or the export report or any part thereof within such time, and the proper officer is satisfied that there is no sufficient cause for such delay, such person-in-charge shall be liable to pay penalty not exceeding fifty thousand rupees".
75. Amendment of section 45
In the Customs Act, in section 45, in sub-section (2), in clause (b), after the words "proper officer", the words "or in such manner as may be prescribed" shall be inserted.
76. Amendment of section 46.
In the Customs Act, in section 46,-
(a) after the word "electronically", at both the places where it occurs, the words "on the customs automated system" shall be inserted;
(b) for the words "in the prescribed form", the words "in such form and manner as may be prescribed" shall be substituted;
(ii) in sub-section (3), in the first proviso, for the words "within thirty days of', the words "at any time not exceeding thirty days prior to" shall be substituted;
(iii) in sub-section (4), for the words "relating to the imported goods", the words "and such other documents relating to the imported goods as may be prescribed" shall be substituted;
(iv) after sub-section (4), the following sub-section shall be inserted, namely:-
"(4A) The importer who presents a bill of entry shall ensure the following, namely:-
(a) the accuracy and completeness of the information given therein;
(b) the authenticity and validity of any document supporting it; and
(c) compliance with the restriction or prohibition, if any, relating to the goods under this Act or under any other law for the time being in force.".
77. Amendment of section 47
In the Customs Act, in section 47, in sub-section (1), in the proviso, for the words "Provided that", the following shall be substituted, namely:-
"Provided that such order may also be made electronically through the customs automated system on the basis of risk evaluation through appropriate selection criteria:
Provided further that".
78. Amendment of section 50.
In the Customs Act, in section 50,-
"(3) The exporter who presents a shipping bill or bill of export under this section shall ensure the following, namely:-
79. Amendment of section 51
In the Customs Act, in section 51, in sub-section (1), in the proviso, for the words "Provided that", the following shall be substituted, namely:-
80. Insertion of new Chapter VILA.
In the Customs Act, after Chapter VII, the following Chapter shall be inserted with effect from such date as the Central Government may, by notification in the Official Gazette, appoint, namely:-
"CHAPTER VIIA
Payments through electronic cash ledger
51A. Payment of duty, interest, penalty, etc.
(1) Every deposit made towards duty, interest, penalty, fee or any other sum payable by a person under the provisions of this Act or under the Customs Tariff Act, 1975 (51 of 1975) or under any other law for the time being in force or the rules and regulations made thereunder, using authorised mode of payment shall, subject to such conditions and restrictions, be credited to the electronic cash ledger of such person, to be maintained in such manner, as may be prescribed.
(2) The amount available in the electronic cash ledger may be used for making any payment towards duty, interest, penalty, fees or any other sum payable under the provisions of this Act or under the Customs Tariff Act, 1975 (51 of 1975) or under any other law for the time being in force or the rules and regulations made thereunder in such manner and subject to such conditions and within such time as may be prescribed.
(3) The balance in the electronic cash ledger, after payment of duty, interest, penalty, fee or any other amount payable, may be refunded in such manner as may be prescribed.
(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.".
81. Amendment of section 54.
In the Customs Act, in section 54, in sub-section (1),-
(i) for the words "the prescribed form", the words "such form and manner as may be prescribed" shall be substituted;
(ii) in the proviso, for the words "the prescribed form", the words "such form and manner as may be prescribed" shall be substituted.
82. Amendment of section 60.
In the Customs Act, in section 60, in sub-section (1), the following proviso shall be inserted, namely:-
"Provided that such order may also be made electronically through the customs automated system on the basis of risk evaluation through appropriate selection criteria.".
83. Amendment of section 68.
In the Customs Act, in section 68,-
(a) in the first proviso, for the words "Provided that", the following shall be substituted, namely:-
"Provided that the order referred to in clause (c) may also be made electronically through the customs automated system on the basis of risk evaluation through appropriate selection criteria:
Provided further that";
(b) in the second proviso, for the words "Provided further that", the words "Provided also that" shall be substituted.
84. Amendment of section 69.
In the Customs Act, in section 69, in sub-section (1), the following proviso shall be inserted, namely:-
"Provided that the order referred to in clause (c) may also be made electronically through the customs automated system on the basis of risk evaluation through appropriate selection criteria.".
85. Amendment of section 74.
In the Customs Act, in section 74, in sub-section (1), in clause (iii), for the word and figures "section 82", the words, brackets, letter and figures "clause (a) of section 84" shall be substituted.
86. Amendment of section 75.
In the Customs Act, in section 75, in sub-section (1), for the word and figures "section 82", the words, brackets, letter and figures "clause (a) of section 84" shall be substituted.
87. Amendment of Chapter heading.
In the Customs Act, in Chapter XI, in the heading, for the word "POST", the words "POST, COURIER" shall be substituted.
88. Amendment of section 83.
In the Customs Act, in section 83,-
(a) for the word "post", wherever it occurs, the words "post or courier" shall be substituted;
(b) for the words "postal authorities" at both the places where they occur, the words "postal authorities or the authorised courier" shall be substituted.
89. Amendment of section 84.
In the Customs Act, in section 84, for the word "post", wherever it occurs, the words "post or courier" shall be substituted.
90. Insertion of new Chapter XIIA.
In the Customs Act, after Chapter XII, the following Chapter shall be inserted, namely:-
'CHAPTER XIIA
Audit
99A. Audit.
The proper officer may carry out the audit of assessment of imported goods or export goods or of an auditee under this Act either in his office or in the premises of the auditee in such manner as may be prescribed.
Explanation.-For the purposes of this section, "auditee" means a person who is subject to an audit under this section and includes an importer or exporter or custodian approved under section 45 or licensee of a warehouse and any other person concerned directly or indirectly in clearing, forwarding, stocking, carrying, selling or purchasing of imported goods or export goods or dutiable goods.'.
91. Insertion of new section 109A.
In the Customs Act, after section 109, the following section shall be inserted, namely:-
'109A. Power to undertake controlled delivery.
Notwithstanding anything contained in this Act, the proper officer or any other officer authorised by him in this behalf, may undertake controlled delivery of any consignment of such goods and in such manner as may be prescribed, to,-
(a) any destination in India; or
(b) a foreign country, in consultation with the competent authority of such country to which such consignment is destined.
Explanation.- For the purposes of this section "controlled delivery" means the procedure of allowing consignment of such goods to pass out of, or into, the territory of India with the knowledge and under the supervision of proper officer for identifying the persons involved in the commission of an offence or contravention under this Act.'.
92. Amendment of section 110.
In the Customs Act, in section 110, in sub-section (2), for the proviso, the following provisos shall be substituted, namely:-
"Provided that the Principal Commissioner of Customs or Commissioner of Customs may, for reasons to be recorded in writing, extend such period to a further period not exceeding six months and inform the person from whom such goods were seized before the expiry of the period so specified:
Provided further that where any order for provisional release of the seized goods has been passed under section 110 A, the specified period of six months shall not apply.".
93. Amendment of section 122.
In the Customs Act, in section 122, for clauses (b) and (c), the following clause shall be substituted, namely:-
"(b) up to such limit, by such officers, as the Board may, by notification, specify.".
94. Amendment of section 124.
In the Customs Act, in section 124, after the proviso, the following proviso shall be inserted, namely:-
"Provided further that notwithstanding issue of notice under this section, the proper officer may issue a supplementary notice under such circumstances and in such manner as may be prescribed.".
95. Amendment of section 125.
In the Customs Act, in section 125,-
(i) in sub-section (1), in the proviso, for the words "Provided that", the following shall be substituted, namely:-
"Provided that where the proceedings are deemed to be concluded under the proviso to sub-section (2) of section 28 or under clause (i) of sub-section (6) of that section in respect of the goods which are not prohibited or restricted, the provisions of this section shall not apply:
(ii) after sub-section (2), the following shall be inserted, namely:-
"(3) Where the fine imposed under sub-section (1) is not paid within a period of one hundred and twenty days from the date of option given thereunder, such option shall become void, unless an appeal against such order is pending.
Explanation.- For removal of doubts, it is hereby declared that in cases where an order under sub-section (1) has been passed before the date on which the Finance Bill, 2018 receives the assent of the President and no appeal is pending against such order as on that date, the option under said sub-section may be exercised within a period of one hundred and twenty days from the date on which such assent is received.".
96. Amendment of section 128 A.
In the Customs Act, in section 128A, in sub-section (3), for the words "just and proper, confirming, modifying or annulling the decision or order appealed against", the following shall be substituted, namely:-
"just and proper,-
(a) confirming, modifying or annulling the decision or order appealed against; or
(b) referring the matter back to the adjudicating authority with directions for fresh adjudication or decision, as the case may be, in the following cases, namely:-
(i) where an order or decision has been passed without following the principles of natural justice; or
(ii) where no order or decision has been passed after re-assessment under section 17; or
(iii) where an order of refund under section 27 has been issued by crediting the amount to Fund without recording any finding on the evidence produced by the applicant.".
97. Insertion of new section 143AA.
In the Customs Act, after section 143, the following section shall be inserted, namely:-
"143AA. Power to simplify or provide different procedure, etc., to facilitate trade.
Notwithstanding anything contained in any other provision of this Act, the Board may, for the purposes of facilitation of trade, take such measures or prescribe separate procedure or documentation for a class of importers or exporters or for categories of goods or on the basis of the modes of transport of goods, in order to,-
(a) maintain transparency in the import and export documentation; or
(b) expedite clearance or release of goods entered for import or export; or
(c) reduce the transaction cost of clearance of importing or exporting goods; or
(d) maintain balance between customs control and facilitation of legitimate trade.".
98. Insertion of new section 151B.
In the Customs Act, after section 151 A, the following section shall be inserted, namely:-
'151B. Reciprocal arrangement for exchange of information facilitating trade.
(1) The Central Government may enter into an agreement or any other arrangement with the Government of any country outside India or with such competent authorities of that country, as it deems fit, for facilitation of trade, enforcing the provisions of this Act and exchange of information for trade facilitation, effective risk analysis, verification of compliance and prevention, combating and investigation of offences under the provisions of this Act or under the corresponding laws in force in that country.
(2) The Central Government may, by notification, direct that the provisions of this section shall apply to the contracting State with which reciprocal agreement or arrangements have been made, subject to such conditions, exceptions or qualifications as may be specified in that notification.
(3) Subject to the provisions of sub-section (2), the information received under sub-section (1) may also be used as evidence in investigations and proceedings under this Act.
(4) Where the Central Government has entered into a multilateral agreement for exchange of information or documents for the purpose of verification of compliance in identified cases, the Board shall specify the procedure for such exchange, the conditions subject to which such exchange shall be made and designation of the person through whom such information shall be exchanged.
(5) Notwithstanding anything contained in sub-section (1) or sub-section (2) or sub-section (3), anything done or any action taken or purported to have been done or taken, in pursuance to any agreement entered into or any other arrangement made by the Central Government prior to the date on which the Finance Bill, 2018 receives the assent of the President, shall be deemed to have been done or taken under the provisions of this section.
Explanation.- For the purposes of this section, the expressions,-
(i) "contracting State" means any country outside India in respect of which agreement or arrangements have been made by the Central Government with the Government or authority of such country through an agreement or otherwise;
(ii) "corresponding law" means any law in force in the contracting State corresponding to any of the provisions of this Act or dealing with offences in that country corresponding to any of the offences under this Act.'.
99. Substitution of new section for section 153.
In the Customs Act, for section 153, the following section shall be substituted, namely:-
"153. Modes for service of notice, order, etc.
(1) An order, decision, summons, notice or any other communication under this Act or the rules made thereunder may be served in any of the following modes, namely:-
(a) by giving or tendering it directly to the addressee or importer or exporter or his customs broker or his authorised representative including employee, advocate or any other person or to any adult member of his family residing with him;
(b) by a registered post or speed post or courier with acknowledgement due, delivered to the person for whom it is issued or to his authorised representative, if any, at his last known place of business or residence;
(c) by sending it to the e-mail address as provided by the person to whom it is issued, or to the e-mail address available in any official correspondence of such person;
(d) by publishing it in a newspaper widely circulated in the locality in which the person to whom it is issued is last known to have resided or carried on business; or
(e) by affixing it in some conspicuous place at the last known place of business or residence of the person to whom it is issued and if such mode is not practicable for any reason, then, by affixing a copy thereof on the notice board of the office or uploading on the official website, if any.
(2) Every order, decision, summons, notice or any communication shall be deemed to have been served on the date on which it is tendered or published or a copy thereof is affixed or uploaded in the manner provided in sub-section (1).
(3) When such order, decision, summons, notice or any communication is sent by registered post or speed post, it shall be deemed to have been received by the addressee at the expiry of the period normally taken by such post in transit unless the contrary is proved.".
100. Amendment of section 157.
In the Customs Act, in section 157, in sub-section (2),-
(i) in clause (a), after the word "form", the words "and manner to deliver or present" shall be inserted;
(ii) for clause (d), the following clauses shall be substituted, namely:-
"(d) the time and manner of finalisation of provisional assessment;
(e) the manner of conducting pre-notice consultation;
(f) the circumstances under which, and the manner in which, supplementary notice may be issued;
(g) the form and manner in which an application for advance ruling or appeal shall be made, and the procedure for the Authority, under Chapter VB;
(h) the manner of clearance or removal of imported or export goods;
(i) the documents to be furnished in relation to imported goods;
(j) the conditions, restrictions and the manner of making deposits in electronic cash ledger, the utilisation and refund therefrom and the manner of maintaining such ledger;
(k) the manner of conducting audit;
(l) the goods for controlled delivery and the manner thereof;
(m) the measures and separate procedure or documentation for a class of importers or exporters or categories of goods or on the basis of the modes of transport of goods.".
101. Amendment of notification issued under sub-section (1) of section 25 of Customs Act and subsection (12) of section 3 of Customs Tariff Act, retrospectively.
(1) The notification of the Government of India in the Ministry of Finance (Department of Revenue) number GS.R. 850 (E), dated the 8th July, 2017, amending the notification number GS.R. 785 (E), dated the 30th June, 2017 which was issued in exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962.) and sub- section (12) of section 3 of the Customs Tariff Act, 1975 (51 of 1975.), shall be deemed to have, and always to have, for all purposes, come into force on and from the 1st day of July, 2017.
(2) Refund shall be made of all such integrated tax which has been collected, but which would not have been so collected, had the amendement made vide the notification referred to in sub-section (1) been in force at all material times:
Provided that an application for claim of integrated tax shall be made within a period of six months from the date on which the Finance Bill, 2018 receives the assent of the President.
Customs Tariff
102. Amendment of Customs Tariff Act, 1975.
In the Customs Tariff Act, 1975 (51 of 1975.) (hereinafter referred to as the Customs Tariff Act), in section 3,-
(i) in sub-section (7), after the word, brackets and figure "sub-section (8)", the words, brackets, figure and letter "or sub-section (8A), as the case may be" shall be inserted;
(ii) after sub-section (8), the following sub-section shall be inserted, namely:-
'(8A) Where the goods deposited in a warehouse under the provisions of the Customs Act, 1962 (52 of 1962.) are sold to any person before clearance for home consumption or export under the said Act, the value of such goods for the purpose of calculating the integrated tax under sub-section (7) shall be,-
(a) where the whole of the goods are sold, the value determined under sub-section (5) or the transaction value of such goods, whichever is higher; or
(b) where any part of the goods is sold, the proportionate value of such goods as determined under sub-section (S) or the transaction value of such goods, whichever is higher:
Provided that where the whole of the warehoused goods or any part thereof are sold more than once before such clearance for home consumption or export, the transaction value of the last such transaction shall be the transaction value for the purposes of clause (a) or clause (b):
Provided further that in respect of warehoused goods which remain unsold, the value or the proportionate value, as the case may be, of such goods shall be determined in accordance with the provisions of sub-section (8).
Explanation.- For the purposes of this sub-section, the expression "transaction value", in relation to warehoused goods, means the amount paid or payable as consideration for the sale of such goods.';
(iii) in sub-section (9), after the word, brackets and figures "sub-section (10)", the words, brackets, figures and letter "or sub-section (10A), as the case may be" shall be inserted;
(iv) after sub-section (10), the following sub-section shall be inserted, namely:
'(10A) Where the goods deposited in a warehouse under the provisions of the Customs Act, 1962 (52 of 1962.) are sold to any person before clearance for home consumption or export under the said Act, the value of such goods for the purpose of calculating the goods and services tax compensation cess under sub-section (9) shall be,-
(a) where the whole of the goods are sold, the value determined under sub-section (10) or the transaction value of such goods, whichever is higher; or
(b) where any part of the goods is sold, the proportionate value of such goods as determined under sub-section (10) or the transaction value of such goods, whichever is higher:
Provided that where the whole of the warehoused goods or any part thereof are sold more than once before such clearance for home consumption or export, the transaction value of the last of such transaction shall be the transaction value for the purposes of clause (a) or clause (b):
Provided further that in respect of warehoused goods which remain unsold, the value or the proportionate value, as the case may be, of such goods shall be determined in accordance with the provisions of sub-section (10).
Explanation.- For the purposes of this sub-section, the expression "transaction value", in relation to warehoused goods, means the amount paid or payable as consideration for the sale of such goods.'.
103. Amendment of First Schedule.
In the Customs Tariff Act, the First Schedule,-
(a) shall be amended in the manner specified in the Second Schedule;
(b) shall also be amended in the manner specified in the Third Schedule.
104. Amendment of Second Schedule.
In the Customs Tariff Act,-
(a) in the Second Schedule, after Note 3, the following Note shall be inserted, namely:-
"4. In respect of all other goods which are not covered under column (2) of this Schedule, the rate of duty shall be 'Nir."-,
(b) the Second Schedule shall be amended in the manner specified in the Fourth Schedule.
THE SECOND SCHEDULE
[See section 103 (a)]
In the First Schedule to the Customs Tariff Act,-
(1) in Chapter 20, for the entry in column (4) occurring against all the tariff items of heading 2009 (except tariff items 2009 11 00, 2009 12 00 and 2009 19 00), the entry "50%" shall be substituted;
(2) in Chapter 33, for the entry in column (4) occurring against all the tariff items of headings 3303, 3304,3305,3306 and 3307, the entry "20%" shall be substituted;
(3) in Chapter 34, for the entry in column (4) occurring against all the tariff items of heading 3406, the entry "25%" shall be substituted;
(4) in Chapter 39, for the entry in column (4) occurring against tariff items 3919 90 90, 3920 99 99, 3926 90 91 and 3926 90 99, the entry "15%" shall be substituted;
(5) in Chapter 40, for the entry in column (4) occurring against tariff item 4011 20 10, the entry "15%" shall be substituted;
(6) in Chapter 48, for the entry in column (4) occurring against tariff item 4823 90 90, the entry "20%" shall be substituted;
(7) in Chapter 56, for the entry in column (4) occurring against all the tariff items of headings 5608 and 5609, the entry "25%" shall be substituted;
(8) in Chapter 64,-
(i) for the entry in column (4) occurring against all the tariff items of headings 6401,6402,6403,6404 and 6405, the entry "20%" shall be substituted;
(ii) for the entry in column (4) occurring against all the tariff items of heading 6406, the entry "15%" shall be substituted;
(9) in Chapter 71, for the entry in column (4) occurring against all the tariff items of heading 7117, the entry "20%" shall be substituted;
(10) in Chapter 84,-
(i) for the entry in column (4) occurring against all the tariff items of headings 8407,8408 and 8409, the entry "15%" shall be substituted;
(ii) for the entry in column (4) occurring against tariff items 8483 10 91 and 8483 10 92, the entry "15%" shall be substituted;
(11) in Chapter 85,-
(i) for the entry in column (4) occurring against all the tariff items of sub-heading 8504 40 (except tariff item 8504 40 21), the entry "15%" shall be substituted;
(ii) for the entry in column (4) occurring against all the tariff items of heading 8506 (except tariff item 8506 90 00), the entry "15%" shall be substituted;
(iii) for the entry in column (4) occurring against tariff items 8507 10 00, 8507 20 00, 8507 30 00, 8507 40 00 and 8507 50 00, the entry "15%" shall be substituted;
(iv) for the entry in column (4) occurring against tariff item 8507 60 00, the entry "20%" shall be substituted;
(v) for the entry in column (4) occurring against tariff item 8507 80 00, the entry "15%" shall be substituted;
(vi) for the entry in column (4) occurring against all the tariff items of heading 8511, the entry "15%" shall be substituted;
(vii) for the entry in column (4) occurring against tariff items 85171210,851712 90 and 8517 62 90, the entry "20%" shall be substituted;
(viii) for the entry in column (4) occurring against tariff item 8517 70 90, the entry "15%" shall be substituted;
(ix) for the entry in column (4) occurring against tariff items 8518 10 00,8518 29 00, 8518 30 00 and 8518 40 00, the entry "15%" shall be substituted;
(x) for the entry in column (4) occurring against tariff items 8529 10 99 and 8529 90 90, the entry "15%" shall be substituted;
(xi) for the entry in column (4) occurring against tariff item 8538 90 00, the entry "15%" shall be substituted;
(xii) for the entry in column (4) occurring against all the tariff items of sub-headings 8544 19,8544 42 and 8544 49 the entry "15%" shall be substituted;
(12) in Chapter 87,-
(i) for the entry in column (4) occurring against all the tariff items of heading 8708, the entry "15%" shall be substituted;
(ii) for the entry in column (4) occurring against all the tariff items of sub-heading 8714 10, the entry "15%" shall be substituted;
(13) in Chapter 90,-
(i) for the entry in column (4) occurring against tariff item 9004 10 00, the entry "20%" shall he substituted;
(ii) for the entry in column (4) occurring against all the tariff items of headings 9018 and 9019, the entry "10%" shall be substituted;
(iii) for the entry in column (4) occurring against tariff item 9020 00 00, the entry "10%" shall be substituted;
(iv) for the entry in column (4) occurring against all the tariff items of headings 9021 and 9022, the entry "10%" shall be substituted;
(14) in Chapter 91, for the entry in column (4) occurring against all the tariff items of headings 9101, 9102, 9103 and 9105, the entry "20%" shall be substituted;
(15) in Chapter 94, for the entry in column (4) occurring against all the tariff items of headings 9401, 9403 and 9404, the entry "20%" shall be substituted;
(16) in Chapter 95,-
(i) for the entry in column (4) occurring against all the tariff items of heading 9503 (except tariff item 9503 00 90), the entry "20%" shall be substituted;
(ii) for the entry in column (4) occurring against all the tariff items of heading 9504, the entry "20%" shall be substituted;
(iii) for the entry in column (4) occurring against tariff item 9505 90 10, the entry "20%" shall be substituted;
(iv) for the entry in column (4) occurring against all the tariff items of headings 9506,9507 and 9508, the entry "20%" shall be substituted;
(17) in Chapter 96,-
(i) for the entry in column (4) occurring against tariff item 9611 00 00, the entry "20%" shall be substituted;
(ii) for the entry in column (4) occurring against all the tariff items of heading 9613, the entry "20%" shall be substituted;
(iii) for the entry in column (4) occurring against all the tariff items of heading 9616, the entry "20%" shall be substituted.
THE THIRD SCHEDULE
[See section 103 (6)]
(1) in Chapter 7, for tariff item 0713 31 00 and the entries relating thereto, the following shall be substituted, namely:-
(2) in Chapter 9, tariff item 0904 22 12 and the entries relating thereto shall be omitted;
(3) in Chapter 12, after tariff item 1209 91 60 and the entries relating thereto, the following shall be inserted, namely:-
(4) in Chapter 29, against tariff item 2917 39 20, in column (2), for the words "Dioctyl phthalate", the words "Dioctyl isophthalate and dioctyl terephthalate" shall be substituted.
THE FOURTH SCHEDULE
[See section 104 (b)]
In the Second Schedule to the Customs Tariff Act, after SI. No. 49 and the entries relating thereto, the following Sl.No. and entries shall be inserted, namely:-