Budget speeds up customs adjudication

The Finance minister has indicated several amendments to the Customs Act like pre-notice consultation, this measure will ensure a definite and meaningful discussion between the Customs officer and the Assesse and will give an opportunity to the Assesse to try and settle their case, says Monish Panda, founder, Monish Panda & Associates.

Another suggested amendment is providing for time lines in which Customs Department has to adjudicate disputes and in the event Adjudication is not complete within such time it will be deemed that the Notice issued to the assessee and the adjudication process is closed.

This is again a welcome move because currently no time period has been specified for completion of Adjudication and these proceedings keep on languishing for years. The Government should also consider introducing similar changes in the present GST regime to streamline and provide for time bound Adjudication proceedings and pre-notice consultation to ensure minimising disputes under the new GST legislation.

The budget has proposed a long-term capital gains tax on profits over Rs1 lakh from equity transactions made post 31st January, 2018 at 10 per cent of total gains. However, any profit made till 31st January, 2018 is exempted from LTCG. This move was expected. Introduction of LTCG will lead to the Sensex falling at least in short term.

Most investors will attempt to book their profits made during the recent bull run and escape imposition of LTCG to be imposed post 31st January 2018.

The Finance minister has only indicated changes in the Customs law in the Indirect Tax side. The Customs duty on Mobile phones and accessories of Television and other electronic parts have been increased to 15 percent. This will definitely boost local manufacturing of electronic items and seems to be a step towards Governments Make in India initiative.