CBEC is in a helpful mood

Exim Matters

 The Tax Clinics will disseminate proper information, educate small-scale manufacturers about their legal responsibilities, guide them in the conduct of their tax matters and try to break the communication wall between them and the department. Besides, the cells will also closely co-ordinate with local SSI associations.

 The CBEC has also reiterated its 1980 instructions that decisions in adjudication and appellate matters must be made within 5 days (in stray cases 15 or 30 days) from the date of conclusion of personal hearing. The annual target for adjudicating officers has also been raised from 75 cases to 100.

 Also, the Board (pursuant to Supreme Court judgment in West Coast Industries Gases Ltd. case) has instructed the field formations not to charge duty or insist on reversal of Cenvat credit taken on waste packages/containers used for packing inputs, when cleared from the factory of the manufacturer who availed Modvat/ Cenvat credit.

 Another useful clarification (of a probably unhelpful provision) is that clearances of exempted goods (except exports) will also be reckoned for determining aggregate value of clearances in the preceding year for the purpose of eligibility under SSI exemptions.

 The CBEC has also approved a revised audit manual with a view to modernize the audit techniques. Units paying less than Rs.10 lacs duty through Personal Ledger Account (PLA) will now be audited only once in five years and their audit (from desk review to report preparation) must be completed within 5 days.

 Bigger units paying duty upto Rs. 1 crore, will be audited every alternate year for 7 days. Others, including Export Oriented Units, will be audited every year for 10 days.

 The CBEC has also accepted the Kelkar Committee