THE WEEK THAT WENT BY
Week Ending 18.06.2022
GOODS AND SERVICE TAX
Instruction No. 03/2022-GST dated 14.06.2022
Summary
- Instructions have been laid down to pass speaking orders along with the refund sanction order in Form GST RFD-06.
- The speaking order should contain details such as the period, date, category for which refund was filed and other details such as deficiency memo if issued earlier for the said claim, whether SCN was issued, whether refund claim was made within the time limits specified for different categories, etc.
- Certain additional details have to be specified in the refund sanction order for different categories of refund claims.
- All Refund orders are required to be reviewed by Commissioners for validating the legality and propriety of the said orders and for taking a view whether an appeal to the appellate authority is required within 6 months of the date of communication of the order, in line with the provisions of Section 107(2) of the CGST Act.
- In view of the sheer volume of refund claims, the post audits of refund orders will be conducted only for refund claims amounting to 1 lakh or more and a post-Audit cell shall be created in the Commissionerate Headquarters.
Novello Comments
- While speaking orders are part of any adjudicating process, this instruction has been issued by the Revenue with a view to standardize and improve the process of sanction, review and post-audit of refund claims as different practices were followed by different Commissionerate.
- India Inc can expect a more streamlined and uniform refund process, going forward at all stages.
- It has been a trend to keep refund claims piled up and orders mechanically are passed without any basis shown. Hopefully, this will stop with the mandate to pass speaking orders with certain ingredients.
CUSTOMS, FTP AND SEZ
Notification No. 22/2022-Customs (Add) dated 15.06.2022 (Customs)
Summary
The Revenue by virtue of this notification, has levied anti-dumping duty on the import of Fluoro Back sheet (excluding transparent back sheet) on a metric tonne basis, for a period of 5 years. The said notification only applies to the above-mentioned goods that either originate from China or are exported from China.
Novello Comments
Importers of Fluoro Back sheet should particularly place importance on the Bonafede certificate of origin for the above-mentioned products and pay the anti-dumping duty, if the same originates from China, or is exported from China.
Notification No. 50/2022-Customs (N.T) dated 15.06.2022
Summary
This notification contains the weekly tariff value per metric tonne/kg/gm pertaining to palm oil, palm olein, soya bean oil, brass scrap, gold & silver (in any form) and arecanuts.
Novello Comments
It is essential for the importers of palm oil, palm olein, soya bean oil, brass scrap, gold & silver (in any form) and arecanuts to save this notification in their records to substantiate the valuation of their imports in case of any subsequent assessment proceedings.
Notification No. 51/2022-Customs (N.T) dated 16.06.2022
Summary
This notification contains the weekly notified foreign exchange rates to be applied for valuation of products imported from / exported to the APAC/Middle East/ American/ Oceania/ European Countries.
Novello Comments
It is essential for importers and exporters of goods from/to the specified countries to save this notification in their records to substantiate the valuation of their imports/exports in case of any subsequent assessment proceedings.
Public Notice No. 15/2015-20 dated 14.06.2022 (DGFT)
Summary
- This public notice is a continuation to the earlier public notice no 10/2015-20 dated 24.05.2022, which laid down the allocation of the tariff rate quota (hereinafter referred to as ‘TRQ’) (quantitative limit on imports) for FY 22-23 and 23-24 pertaining to Crude Soya Bean Oil and Crude Sunflower Seed Oil for 20 lakh Metric Tonnes each.
- Importers of the above products shall provide a self-certified copy of documentary proof of their processing capacity for edible oils.
- Further details of turnover for processing of crude edible oils from FY 19-20 to 21-22 has to be submitted along with self-certified GST Returns.
- The import made shall be for domestic processing and consumption only.
- The TRQ issued for FY 22-23 shall be valid for clearance of import for a period of 1 year or June 30,2023 whichever is earlier.
- The TRQ issued for FY 23-24 shall be valid for clearance of imports till 31 March 2024.
- Imports landing at ports after the date of issuance of TRQ license shall only be considered. Goods warehoused before the date of issuance of TRQ will not be considered.
Quantities not imported by the TRQ licensees in FY 22-23, shall be deducted from their proposed allocations of the TRQ of FY 23-24.
Novello Comments
Importers of crude soyabean oil and crude sunflower seed oil shall have to ensure that all their GST Returns are duly filed in order to be eligible for TRQ Allocation.
The import of crude oil for FY 22-23 shall have to be optimized to ensure that there is no deduction made from the allocated TRQs for FY 23-24.
Public Notice No. 14/2015-20 dated 13.06.2022 (DGFT)
Summary
- This public notice states that Pre-Export Authorization will not be required for export/re-export of SCOMET items including software and technology subject to the following conditions.
- The export has to be an intra-company transfer between an Indian parent company and foreign subsidiary or an Indian subsidiary and foreign parent.
- There should be a contract or a MSA in place for the export/re-export of the SCOMET items, with the service carried out being design, encryption, R&D. The above services are only illustrative and not exhaustive.
- Service carried out by the Indian exporter should not undergo change in classification.
- Further the list of countries to which export/re-export is made has been specified in the Table 1 of the notice.
- The internal controls of the exporter have to be certified either by a Govt agency such as the AEO scheme or by an approved Internal Compliance Programme of the company.
- The exporter shall allow on-site inspection by the DGFT.
- The application for the issue of authorization for the intra-company transfer would be assessed by the IMWG (Inter-Ministerial Working Group) based on application and other supporting documents as prescribed in this notice.
- The exporter must submit end-user certificate within 30 days of filing the application.
- The exporter shall submit post-shipment details of each consignment by the end of subsequent month of each quarter in the form prescribed in this notice.
- The exporter shall keep records of the export documents for 5 years.
- Authorization for Intra-company transfers shall be valid for 3 years.
- Novello CommentsExporters of SCOMET items who execute intra-company transfers shall ensure that they enter into a contract or a master services agreement with the importer.
It is prudent to have an internal compliance program in place to prove the effectiveness and efficiency of internal controls.