CBIC revises guidelines on arrest, prosecution for Customs violations
The Central Board of Indirect Taxes and Customs (CBIC) has issued revised guidelines for prosecution, arrest and bail under the Customs Act.
IMPORTANT FACTS -
- CBIC has increased the limit of fine for violation of these rules.
Smuggling of high value goods such as gold and unauthorized import of goods, the market value of which is more than Rs 50 lakh, can lead to prosecution and arrest.
Cases of wrong declaration or evasion of duty of goods worth Rs 2 crore or more will also face similar action.
Arrest will also be made if the amount of fraudulent duty refund or duty exemption in export of goods exceeds Rs.2 crore.
However, the above limit of value will not apply to certain items like ammunition, antiquities, art treasures, wildlife and endangered species.
What is Custom Duty?
Customs duty refers to the tax levied on goods when they are transported across an international border.
It is a tax that is levied on the import and export of goods.
The government uses this duty to increase its revenue, protect domestic industries and control the movement of goods.
Types of custom duty :
Basic Customs Duty (BCD)
Countervailing Duty (CVD)
Additional Customs Duty or Special CVD
Central Board of Indirect Taxes and Customs (CBIC) :
It is a subsidiary board of the Department of Revenue under the Union Ministry of Finance.
It mainly deals with the functions of policy formulation and implementation relating to levy and collection of Customs Duty, Central Excise Duty and Goods and Services Tax.
It also works for the prevention of smuggling.
CBIC is headed by a Chairman and consists of 6 members.
Present Chairman - Vivek Johri
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