TaxTMI 
TaxTMI 
2025 (6) TMI 693
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....of Commissionerate of Customs (General), JNCH, Nhava Sheva. There were two Shipping Bills (S/Bs) viz., S/B Nos. 7304634 and 7304635 both dated 07.01.2022 filed for export of 297.541 MTs of 'SHG Jumbo Zinc (minimum of 99.995%) in 12 containers by the exporter M/s Hindustan Zinc Limited through their customs broker (CB) M/s Western Carriers (India) Limited. Since, the exporter was exporting the goods under self-sealing procedure with electronic/e-seal verification, the containers arrived at the JNCH, Nhava Sheva port under Direct Port Entry (DPE) procedure at Jasai holding yard on 09.01.2022 (Sunday) and subsequently the containers were moved inside the JNCH port terminals on the same day for export through the vessel 'MV Thorsky'. In respect of the above exports, the customs broker was able to present the assessed S/Bs for obtaining Let Export Order (LEO) only on 10.01.2022, and as the vessel was scheduled to depart/sail on 09.01.2022, the LEO copy of S/Bs could not be presented to the master of the vessel before it was leaving the port of export, and while processing the S/Bs for allowing drawback on exports, the error message of "LEO date greater than sailing date" appeared in the....
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.... submitted that the decision to suspend the operations of the appellants is ultra vires as they are not the 'Authorised Sea Carrier' who is required to file the Export General Manifest (EGM) and hence the action taken in the impugned order under Regulation 11 ibid for alleged violations of regulations 5, 10(1)(m) ibid is improper. Since the appellants are not the person in charge of the vessel carrying the export goods, learned Advocate pleaded that the appellants are not liable for imposition of penalty alleging violation under sub-sections (d), (f) & (g) of Section 113 ibid, Section 114(iii) ibid. 3.2 Further, learned Advocate also submitted that the SCMTR, 2018 has not yet been implemented by the Central Board of Indirect Taxes & Customs (CBIC); even though these regulations were introduced in the year 2018, as its implementation has been extended by way of transitional provisions under regulation 15 (2) of SCMTR, 2018; hence, he stated that the appellants cannot be penalised for violation of the said regulations. 3.3 Furthermore, learned Advocate stated that appellants have acted only as an agent of the Non-Vessel Operating Common Carrier (NVOCC) and issued bill of lading to ....
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.... before the departure of the vessel from the port, deliver the departure manifest to the proper officer electronically : Provided that where it is not possible to deliver the departure manifest electronically, then the manifest shall be delivered manually in duplicate with the approval of Commissioner of Customs before the departure of the vessel. (2) The departure manifest shall consist of, - (a) a general declaration in Form-III; (b) a vessel's stores list in Form-IV; (c) a list of private property in the possession of the Master and crew, in Form-V; (d) a cargo declaration : (i) for vessel departing from an Indian port to a Foreign port in Form- VIIA; or (ii) for vessel departing from an Indian Port to another Indian port directly or through designated foreign route in Form-VIIB; (e) any other declaration which, under the provisions of the Customs Act or any other Act for the time being in force is required to be delivered to the proper officer on arrival of the vessel. 10. Responsibilities of the authorised carrier under these regulations. - (1) An authorised carrier shall- xxx xxx xxx xxx (m) abide by all the provisions of the Act and the ru....
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....istant Commissioner of Customs, shall in the course of inquiry, consider such documentary evidence and take such oral evidence as required for inquiry and he may also put any question to any person tendering evidence, for or against the authorised carrier, for the purpose of ascertaining the correct position. (4) The authorised carrier shall be entitled to cross-examine the persons examined in support of the grounds forming the basis of the proceedings and where the Deputy Commissioner of Customs or Assistant Commissioner of Customs, declines to examine any person on the grounds that his evidence is not relevant or material, he shall record his reasons in writing for so doing. (5) Deputy Commissioner of Customs or Assistant Commissioner of Customs, shall prepare a report of the inquiry recording his findings after the conclusion of the inquiry. (6) The jurisdictional Commissioner of Customs shall provide to the authorised carrier a copy of the report of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, and shall require the authorised carrier to submit within the specified period not being less than thirty days any submission against the findings of ....
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....r No. 12/2021-Customs F. No.450/58/2015-Cus IV(Pt) Government of India Ministry of Finance Department of Revenue (Central Board of Indirect Taxes & Customs) Room No.227B, North Block, New Delhi, dated the 30th June, 2021 To, All Principal Chief Commissioners/ Chief Commissioners of Customs/ Customs (Preventive) All Principal Chief Commissioners/ Chief Commissioners of Customs & Central tax, All Principal Commissioners/ Commissioners of Customs/ Customs (Preventive), All Principal Commissioners/ Commissioners of Customs & Central tax, All Principal Director Generals/ Director Generals under CBIC. Madam/Sir, Subject: Implementation of the Sea Cargo Manifest and Transhipment Regulations. Kind reference is invited to the Circular No. 43/2020- Customs dated 30th September 2020 on the implementation of Sea Cargo Manifest and Transhipment Regulations. 2. Sea Cargo Manifest and Transhipment Regulations (SCMTR), 2018, were notified vide Notification No.38/2018-Customs (N.T.) dated 11.05.2018. The SCMTR seek to bring about transparency, predictability of movement, advance collection of information for expeditious clearance and supersedes the earlier regulation....
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.... and guide the trade suitably to ensure smooth implementation of the Sea Cargo Manifest and Transhipment Regulations. 7.3 Taking into account of disruptions caused due to Covid-19 Pandemic and non-readiness of the stakeholders, CBIC had issued Notification No.94/2020-Customs (N.T.) dated 30.09.2020, vide which the transitional provisions under Regulation 15(2) were further extended from 01.10.2020 till 31.03.2021 to enable submission of manifests under erstwhile regulations. However, as per Regulation 15(1), mandatory filing of different declarations in new format in a phased manner is provided for as per the annexure-A to this circular. 7.4 Furthermore, different timelines are prescribed by the Government so that trade has sufficient time to comply with the new regulations in a phased manner. It is also seen that vide Regulation 15(2), the mandatory compliance requirements for submissions of declarations and manifests under the said regulations was applied as per the dates prescribed for different customs ports as mentioned therein. The extract of the said Notification No.57/2024-Customs (N.T.) dated 31.08.2024 is given below. On careful perusal of these details, it transpires t....
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....fter Form-XII, the following table shall be inserted, namely: - TABLE [Refer Regulation 14(2)] Sr. No. Customs Ports Date till which the transitional provisions are applicable (1) (2) (3) 1. Mormugao (INMRM1) 10.09.2024 2. Mangalore (INNML1) 30.09.2024 3. Mumbai (INBOM1) and Kandla (INIXY1) 15.10.2024 4. Tuticorin (INTUT1) and Vishakhapatnam (INVTZ1) 31.10.2024 5. Ennore (INENR1), Kattupalli (INKAT1) and Cochin (INCOK1) 15.11.2024 6. All the Customs Ports other than mentioned at Sr. No. 1 to 5 above 30.11.2024 [F. No. 450/58/2015- Cus-IV(Pt.I)] (Dhananjay Singh) Under Secretary to the Government of India. Circular No. 10/2025-Customs F. No. 450/58/2015-Cus.IV(Pt.I) Government of India Ministry of Finance Department of Revenue (Central Board of Indirect Taxes & Customs) Room No. 229A, North Block, New Delhi, Dated the 28th March, 2025 To, All Principal Chief Commissioners/Chief Commissioners (Customs/Customs (Preventive)/Customs & Central Tax), All Principal Commissioners/Commissioners of Customs/Customs (Preventive), All Principal Director General/Director Generals under CBIC. Subject: Implementati....
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....urs faithfully, (Dhananjay Singh) Under Secretary to the Government of India Email: [email protected] 7.6 Hence, under such circumstances where CBIC had specifically directed the Chief Commissioners/Commissioners of Customs to sensitise the field officers not to take penal action in the interim period, we find that the impugned order invoking the provisions of such SCMTR, which is yet to be implemented on the relevant date of two S/Bs concerning the present case i.e., both dated 07.01.2022, for imposition of suspension of the operation of the appellants and imposition of penalties on the appellants does not stand for legal scrutiny. 7.7 Therefore, it could be concluded that all the requirements for declaration of details including the alleged requirements under Regulation 5 ibid in the case of appellants in respect of JNCH Nhava Sheva port would be operational only when the entire SCMTR, 2018 was made fully operations for the specific port of import/export. It is an undisputed fact that the impugned two S/Bs concerning the present case are both dated 07.01.2022, for which the SCMTR, 2008 does not apply on that date as the said regulations was made operational for JNCH, Nhav....
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....ort, in such form and manner as may be prescribed and in case, such person- in-charge or other person fails to deliver the departure manifest or export manifest or the export report or any part thereof within such time, and the proper officer is satisfied that there is no sufficient cause for such delay, such person-in-charge or other person shall be liable to pay penalty not exceeding fifty thousand rupees. Provided that the Principal Commissioner of Customs or Commissioner of Customs may, in cases where it is not feasible to deliver the departure manifest or export manifest by presenting electronically, allow the same to be delivered in any other manner. (2) The person delivering the departure manifest or export manifest or export report shall at the foot thereof make and subscribe to a declaration as to the truth of its contents. (3) If the proper officer is satisfied that the departure manifest or export manifest or export report is in any way incorrect or incomplete and that there was no fraudulent intention, he may permit such manifest or report to be amended or supplemented. Confiscation of goods attempted to be improperly exported, etc. Section 113. The followin....
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....officer of customs. It is not the case of Revenue, that the vessel 'MV Thorsky' which sailed out from JNCH Nhava Sheva port on 09.01.2022 was not given 'Entry Outwards' by Customs authorities and the loading of the containers/export goods was not supervised by the proper officer of Customs. The only allegation levelled in the present case of two S/Bs is that Let Export Order copy was not provided to the shipping line/master of the vessel on 09.01.2022 when it sailed duly obtaining the Entry Outwards by the Customs authorities, after all the export goods have been loaded under the supervision of proper officer of Customs. Therefore, there is no case for violation of the provisions of Section 34 and 39 of the Customs Act, 1962 in the present case. 8.3 It also transpires from plain reading of Section 41 ibid that the requirement of submission of Export General Manifest (EGM) before the departure of the vessel is primary responsibility of the person in-charge of the vessel or his agent, as may be specified through notification issued by the Central Government. Therefore, the shipping lines, NVOCC or shipping agent or such other authorised persons alone are responsible for filing the E....
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.... limit, the vessel is not missed. In this regard, if required, they may issue advisory prescribing the timelines so that if any container has entered the Parking Plaza within those time lines, its loading on the vessel has to be ensured subject to compliance of Customs Act or any other law." Further, in Public Notice No.13/2017 dated 31.01.2017 it has also been provided that in case of any delay in processing of S/Bs due to system issues, in order to ensure that the export goods does not miss the vessel in which it is to be sailed out of the country, manual clearances/ manual Let Export Order (LEO) has been allowed on case to case basis. On careful perusal of the aforesaid instructions of the Customs authorities, it clearly transpires that customs clearance of exports, including grant of LEO has been facilitated to ensure that the export goods does not miss the vessel and the exporter(s) are put to loss or delay in export, on account of the inefficiency or unexpected problems that may arise in customs clearance of exports. 8.6 Furthermore, the Customs EDI system provides for processing of Shipping Bill under the following processes viz., (i) S/B filing by the exporter or his agen....