The latest worry for the revenue department is websites putting out bogus notifications.
According to an alert issued by the Central Board of Excise and Customs (CBEC), a private website, agriwatch.com, put out a fake notification number, 30/2003-Cus. (NT), dated May 6, 2003, reducing the tariff value on crude soybean oil from $600 per metric tonne to $530 per metric tonne.
For valuation purposes, the government notifies the tariff values for edible oils and brass scrap under Section 14(2) of the Customs Act, 1962, based on trend value of the goods.
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Once the tariff value is notified for any item, a duty is charged on the basis of the notified tariff value, irrespective of the transaction value. The last notification issued in respect of the tariff value is numbered 15/2003-Cus. (NT), dated February 25, 2003.
The CBEC alert, dated May 7, 2003, said the notification put out by agriwatch.com was fake and, therefore, should be ignored.
Notification number 30/2003-Cus. (NT), dated April 25, 2003, relates to exchange rates for currencies on imported goods, which have already been published in the gazette.
The CBEC has further advised that the departmental officers should only give effect to the notifications published in the websites, www.cbec.gov.in and www.taxindiaonline.com. Incidentally, the latter website is that of a non-government entity.
Another problem facing the Customs department is that some unscrupulous importers are misdeclaring grades of raw silk consignments to avoid payment of anti-dumping duty.
The government had imposed an anti-dumping duty on raw silk of grade 2A and below imported from China through the notification number 2/03, dated January 2, 2003.
Misdeclaration of the grade, if undetected, puts the import outside the purview of the anti-dumping notification.
The CBEC has now asked the field formations to check all the raw silk consignments from China and get the goods tested.
To ensure that clearance is not delayed, the consignments may be cleared without waiting for a test report, taking a test bond with suitable bank guarantee from the importers.
The reform measures in the textile sector continue to throw up fresh issues and the CBEC continues to find workable solutions. A number of manufacturers put their looms or sewing machines in the same premises.
The CBEC now says the machines/looms belonging to the same manufacturer must be treated as a factory for the purpose of computing the aggregate value of clearances from each factory.
Another workaround the CBEC has devised is to allow fully exempted units to retain only photocopies of the documents showing purchase of their inputs, such as yarn/fabrics, and allow endorsement of the original invoices/documents in favour of the manufacturers or first/second stage dealers to whom they sell their manufactured goods.
The CBEC has also asked the field formations not to insist that the unregistered textile traders bring the goods they purchase to their premises and then resell the same for the purpose of endorsement of the purchase documents in favour of the person to whom they sell.
Resale can take place from the transporters