The Central Board of Revenue (CBR) will not serve show-cause notices for misdeclaration to importers of iron, steel and aluminium scrap, partially or wholly serviceable, but they would have the option to scrap the item.
Sources told Business Recorder on Sunday that through an amendment in the Finance Act, 2006, the importers have the option, from July 1, 2006, to apply for mutilation of the imported goods before filing Goods Declaration (GD).
In this connection, the Board has issued instructions to the collectors of customs regarding issuance of show-cause notices to importers of iron, steel and aluminium scrap.
The importers had drawn attention of the Board to the problems being faced by them in cases where, on physical examination, the consignments of iron, steel and aluminium scrap were found to be partly or wholly serviceable. In such cases, they were served with show-cause notices for misdeclaration, under section 32 of the Customs Act, 1969, despite the fact that the importers had made requests for examination prior to assessment of the imported consignment.
The Board examined the issue and observed that section 27A of Customs Act, 1969, provides for denaturing, mutilation or scrapping of imported goods on request of the importer.
It further provides that in such cases the goods shall be chargeable duty and taxes at such rates as may be applicable if the goods had been imported in denatured or mutilated form or as scrap. Moreover, in order to invoke the provisions of section 32 of the Customs Act, 1969, the element of ''mensrea'' has to be there as per the judgements of superior courts and Board''s instructions in this regard through S.No 101b of the customs general order (CGO) 12/2002.
The Board has directed the collectors to follow the law as per section 27A of Customs Act, 1969. In cases where importers of iron, steel and aluminium scrap make requests for scrapping or mutilation of items as are found serviceable, this option shall be given to them instead of issuing show-cause notice for misdeclaration under section 32 of the Customs Act, 1969.
An amendment has been made in section 27A of the Customs Act, 1969 through the Finance Act, 2006, requiring the importers to make requests for denaturing or mutilation of goods before the filing of Goods Declaration (GD). The decision is being implemented from July 1, 2006.
The Collectorates may issue public notices informing the importers about the new change and their obligation for availing of the option provided under this provision of the Act, the Board added.
Comments
Comments are closed.