TaxTMI 
TaxTMI 
2011 (11) TMI 376
X X X X Extracts X X X X
X X X X Extracts X X X X
....trade facilitation on the one hand and enforcement on the other. Under the RMS, Bills of Entry filed by importers in the Indian Customs Electronic Data Interface System will be processed for risk and a large number of consignments will be allowed clearance based on a self assessment by the importer without examination. In the case of a Full Container Load (FCL) the container numbers and seals would be verified while in the case of a Less Container Load (LCL) only the marks and numbers on the packages are to be verified. Importers registered by the department as accredited clients are allowed this facility of assured facilitation. Except for a small percentage of consignments selected on a random basis or cases where specific intelligence is available or where a specific pattern of non compliance is required to be addressed, accredited clients are allowed clearance on the basis of a self assessment as a matter of course on a declaration made and without physical examination of the goods. The benefit is made available to a registered accredited client at all ports in the country where the system is operational. This measure was intended to bring about a reduction in the dwell time of....
X X X X Extracts X X X X
X X X X Extracts X X X X
....issued on 20 August 2011 by the Central Board of Excise and Customs under which paragraph 7(iii) was substituted as follows: "7(iii) They should have no cases of Customs, Central Excise or Service Tax, as detailed below, booked against them in the previous three financial years. (a) Cases of duty evasion involving misdeclaration/misstatement/collusion/willful suppression/fraudulent intent whether or not extended period for issue of SCN has been invoked. (b) Cases of misdeclaration and/or clandestine/unauthorized removal of excisable/import/export goods warranting confiscation of said goods. (c) Cases of misdeclaration/misstatement/collusion/willful suppression/fraudulent intent aimed at availing CENVAT credit, rebate, refund, drawback, benefits under export promotion/reward schemes. (d) Cases wherein Customs/Excise duties and Service Tax has been collected but not deposited with the exchequer. (e) Cases of nonregistration with the Department with intent to evade payment of duty/tax." 5. The Petitioner had initially applied for accreditation on 2 March 2010. By a communication dated 14 June 2010 the Assistant Comm....
X X X X Extracts X X X X
X X X X Extracts X X X X
....oluntary compliance. An Accredited client would be entitled to clearance of a large number of consignments purely on the basis of self assessment and it is only in a small number of cases, that consignments would be randomly selected for checks by the Customs officer. It has been explained that the ACP is intended for importers who have a clean track record and history of compliance with the laws and regulations that the Customs Department is required to administer. This includes not only the Customs Act and the rules and regulations made thereunder, but also the exim policy framed by the Director General of Foreign Trade and various allied acts which are administered by the Customs or other government departments. The main risks identified by the Customs Department include (i) Threat to national security, public safety and health; (ii) Threat to revenue arising from misdeclaration of goods, undervaluation, misclassification of goods or erroneous claim of exemptions; (iii) Threat to the economy by evasion of duty; (iv) Smuggling of prohibited articles. Condition 7(iii) as original imposed was modified subsequently on 20 August 2010 upon receipt of representations from trade and ind....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t becomes entitled under the scheme to a clearance of the cargo on the basis of self assessment. The department caries out random checks in certain cases or where specific intelligence is received. No importer had a right as such under the law to claim clearance of cargo merely on the basis of self assessment and by furnishing a declaration. This was a facility which was extended by the Central Board of Excise and Customs to a select class of importers whose track record shows a high level of compliance. An importer who is not accredited can still continue to import his goods following the normal procedure. As originally introduced condition 7(iii) of the circular stipulated that the importer should have no case of Customs, Central Excise or Service Tax booked against him in the previous three financial years. Cases booked would imply that there should be at least a show cause notice invoking penal provisions. On the representation of the trade and industry that condition has now been modified by the subsequent circular dated 20 August 2010. As modified, the condition now stipulates that there should be no cases involving Customs, Central Excise or Service Tax, as the case may be, ....