Revenue Audit Exam 2021 Section IIA : Central and State Revenues Audit

Revenue Audit Exam 2021 Section IIA : Central and State Revenues Audit.

Session Overview. Statutory Provisions for levy of Customs Duty Chapter I – Preliminary Chapter III- Appointment of Customs port, airport, warehousing stations etc. Chapter IX - Warehousing Chapter XI – Special Provision regarding baggage, goods imported or exported by post, and stores. CHAPTER XIII - Searches, seizure and arrest CHAPTER XIV - Confiscation of goods and conveyances and imposition of penalties Chapter XV- Appeals and Revision Chapter XVI - Offences and prosecutions, and Chapter XVII – Miscellaneous.

Statutory Provisions for Levy of Customs Duty. Entry No. 83 of List 1 to Schedule VII of the Constitution empowers the Union Government to legislate and collect duties on imports and exports. Accordingly, the Customs Act, 1962, effective from 1-2-1963 provides vide its Section 12 for the levy of duties on goods imported into or exported from India..

Chapter I - Preliminary. Section 1 - Short title, extent and commencement. – This Act may be called the Customs Act 1962 It extends to whole of India Come into effect on 1 February 1963.

Chapter I - Preliminary. Section 2. Definitions Adjudicating Authority means any authority competent to pass any order or decision under this Act, but does not include the Board, Commissioner (Appeals) or Appellate Tribunal. Appellate Tribunal means the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) constituted under section 129 of Customs Act 1962. 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 or under any other law for the time being in force, with reference to- a) classification of goods b) Value of goods c) exemption or concession consequent upon any notification d) Quantity, weight, volume, measurement or other specifics of such goods. e) Origin of such goods, and f) any other specific factor..

Chapter I – Preliminary. Bill of Entry means Bills of Entry referred to in section 46 Baggage includes un-accompanied baggage but does not include motor vehicles. Bill of export means a bill of export referred to in section 50. Board means Central Board of Indirect Tax and Customs (CBIC). Customs Area means the area of a customs station a warehouse and includes any area in which imported goods or export goods are ordinarily kept before clearance by Customs Authorities. Dutiable goods means any goods which are chargeable to duty and on which duty has not been paid..

Chapter I - Preliminary. Export means taking out of India to a place outside India; Goods includes - (a) vessels, aircrafts and vehicles; (b) stores; (c) baggage; (d) currency and negotiable instruments; and (e) any other kind of movable property; Import means bringing into India from a place outside India. Imported goods means any goods brought into India from a place outside India but does not include goods which have been cleared for home consumption. Indian Customs Waters means the waters extending into the sea up to the limit of Exclusive Economic Zone and includes any bay, gulf, harbor, creek or tidal river..

Chapter I - Preliminary. Prohibited goods means any goods the import or export of which is subject to any prohibition under this Act or any other law for the time being in force but does not include any such goods in respect of which the conditions subject to which the goods are permitted to be imported or exported have been complied with. Shipping Bill means a shipping bill referred to in section 50. Smuggling in relation to any goods, means any act or omission which will render such goods liable to confiscation under section 111 or section 113; Warehouse means a public warehouse (section 57) or a private warehouse (section 58) or a special warehouse (section 58A)..

Chapter III- appointment of Customs port, Airport, Warehousing stations etc..

Chapter III- appointment of Customs port, Airport, Warehousing stations etc..

Chapter IX - Warehousing. Principal Commissioner of Customs or Commissioner of Customs - A. May license a public warehouse wherein dutiable goods may be deposited. (Section 57) B. May license a private warehouse wherein dutiable goods imported by or on behalf of the licensee may be deposited. (Section 58) C. May License a special warehouse wherein dutiable goods may be deposited and such warehouse shall be caused to be locked by the proper officer and no person shall enter the warehouse or remove any goods therefrom without the permission of the proper officer. (Section 58A). The Board may specify the class of goods which shall be deposited in the special warehouse licensed under Section 58A.

Chapter IX - Warehousing. Section 58. Cancellation of License PCC or CC may cancel licenses granted under section 57/58/58A if it is found that the licensee has contravened provisions of the Act or any other law for the time being in force. Upon cancellation, the goods warehoused should be removed within seven days or such extended period as allowed by proper officer from the date on which notice for cancellation of license has been served..

Chapter IX - Warehousing. SECTION 59. Warehousing Bond. The importer shall execute a bond equal to thrice the amount of the duty assessed on such goods. The importer shall, in addition to the execution of a bond furnish such security as may be prescribed. SECTION 60. Permission for deposit of goods in a warehouse. SECTION 61. Period for which goods may remain warehoused. Capital goods/goods other than capital goods intended for use in any 100% EOU/EHTP unit/STP unit/any warehouse wherein manufacture or other operations have been permitted under section 65 – till the clearance/consumption from warehouse. other goods - one year. (PCC or CC may extend the warehoused period for one year at a time).

Chapter IX - Warehousing. SECTION 61(2). Interest for storage beyond permissible period If goods remain in a warehouse beyond a period of ninety days from the date on which the proper officer has made an order U/s 60, interest shall be payable. The rate of interest may be fixed by the Central Government under section 47 on the amount of duty payable at the time of clearance of the goods, for the period from the expiry of the said ninety days till the date of payment of duty on the warehoused goods. SECTION 65. Manufacture and other operations in relation to goods in warehouse with the permission of Principal Commissioner of Customs or Commissioner of Customs.

Chapter IX - Warehousing. Removal of goods from a warehouse A. To another warehouse u/s 67 B. For Home Consumption U/s 68 by filing ex-bond Bill of Entry. C. For export U/s 69.

Chapter XI – Special Provision regarding baggage, goods imported or exported by post, and stores..

Chapter XI – Special Provision regarding baggage, goods imported or exported by post, and stores..

CHAPTER XIII - Searches, seizure and arrest. SECTION 100-101. Gives power to an officer of customs to search suspected person entering or leaving India. SECTION 102. Persons to be searched may require to be taken before gazetted officer of customs or magistrate. SECTION 103. Power to screen or X-ray bodies of suspected persons for detecting secreted good. SECTION 104. Power to Arrest. If an officer of customs has reason to believe that any person has committed an offence punishable under section 132/133/135/135A/136, he may arrest such person. and shall inform him of the grounds for such arrest. Every person arrested shall be taken to a magistrate. Cognizable & non-cognizable - Offences involving prohibited goods/evasion or attempted evasion of duty/fraudulent claim of drawback exceeding fifty lakh rupees are cognizable. All other offences are non-cognizable..

CHAPTER XIII - Searches, seizure and arrest. Bail-able & Non-Bailable- Cognizable cases, import/export by miss declaration of market price valued above Rs.one Crore, wrong claim of drawback/exemption of above Rs.50 lakh are non-bailable. Other cases are bail able. SECTION 105. Give Customs Officers power to search premises if he has the reason to believe that any goods liable to confiscation, documents or things which is relevant to any proceeding under this Act, are secreted in any place. Similarly, the Act gives Customs officer power to stop and search conveyances, examine a person related to any enquiry or to summon a person. (Section 106 to 108) SECTION 110. Seizure of goods, documents and things. - If the proper officer has reason to believe that any goods are liable to confiscation under this Act, he may seize such goods..

CHAPTER XIV - CONFISCATION OF GOODS AND CONVEYANCES AND IMPOSITION OF PENALTIES.

CHAPTER XIV - CONFISCATION OF GOODS AND CONVEYANCES AND IMPOSITION OF PENALTIES.

CHAPTER XIV - CONFISCATION OF GOODS AND CONVEYANCES AND IMPOSITION OF PENALTIES.

CHAPTER XIV - CONFISCATION OF GOODS AND CONVEYANCES AND IMPOSITION OF PENALTIES.

Chapter XV- Appeals and Revision. SECTION 128. Appeals Any concerned person aggrieved with the departmental adjudication (except adjudicated by PCC/CC) is given the right to appeal against the said order. The first level of appeal is to Commissioner (Appeals) should be filed by the aggrieved party (or department) within 60 days from the receipt of communication of such order. Such appeal should be disposed off normally within 6 months from the date of filing of appeal..

Chapter XV- Appeals and Revision. SECTION 129. Appellate Tribunal (CESTAT) Customs, Excise and Service Tax Appellate Tribunal (CESTAT) is constituted by Government of India. The Tribunal Consists of president, vice-president and other members. The appeal to the Tribunal can be made within 3 months from the communication of order/decision by PCC/CC or by the Commissioner (appeals). The Appellate Tribunal shall, where it is possible to do so, hear and decide every appeal within a period of three years from the date on which such appeal is filed..

Chapter XV- Appeals and Revision. SECTION 130. Appeal to High Court. The appeal should be filed normally within 180 days from the date of such order being appealed against was received by the party. An appeal shall lie to the High Court if the High Court is satisfied that the case involves a substantial question of law. In the case of High Courts appeals should not be filed in cases where the duty involved or total revenue including fine or penalty is Rs.50 lakhs and below. SECTION 130E. Appeal to Supreme Court. An appeal shall lie to the Supreme Court from any judgment of the High Court delivered..

Chapter XVI - Offences and prosecutions. SECTION 132. False declaration, false documents, etc.-imprisonment 2yrs or fine or both SECTION 132. Obstruction of officer of customs-same as above SECTION 135. Evasion of duty or prohibitions..

Chapter XVII - Miscellaneous. SECTION 142. Recovery of sums due to Government. to deduct the amount so payable from any money owing to such person which may be under the control of the proper officer or such other officer of customs. may recover or may require any other officer of customs to recover the amount so payable by detaining and selling any goods belonging to such person which are under the control of the Assistant Commissioner of Customs or Deputy Commissioner of Customs or such other officer of customs..

Chapter XVII - Miscellaneous. SECTION 143. Power to allow import or export on execution of bonds in certain cases. - SECTION 14. Licensee for customs broker. SECTION 152. Delegation of powers. SECTION 156. General power to make rules. The Central Government may make rules consistent with this Act to carry out any action for the purposes of this Act. SECTION 157. General power to make regulations. - the Board may make regulations consistent with this Act and the rules, generally to carry out the purposes of this Act. SECTION 158. All rules and regulations made under this Act shall be published in the Official Gazette..