CENTRAL BOARD OF REVENUE
S.R.O. 623 (I)/2004-: In exercise of powers conferred by section 219 of the Customs Act 1969(IV of 1969) , the Central Board of Revenue is pleased to direct that the following further amendments shall be made in the Custom Rules, 2001, namely:-
In the aforesaid rules after “CHAPTER XVI”, the following new chapter “CHAPTER XVII”, shall be inserted, namely:-
ALTERNATE DISPUTE RESOLUTION
377. Application. The Provisions of this chapter shall apply to all cases of disputes brought or specified for resolution under section 195-C of the Act.
378. Definitions, (1) In this chapter, unless there is anything repugnant in the subject or context,-
(a) “Act” means the Customs Act, 1969;
(b) “Applicant” means a person or a class of persons who has brought a dispute for resolution under section 195-C of the Act;
(c) “Committee” means a committee constituted under sub-section (2) of section 195-C of the Act; and
(d) “Dispute” means a case where, for evidently valid reasons, and importer or exporter is aggrieved in connection with any matter of customs specified in sub-section (1) of section 195-C of the Act and prima facie deserves relief of the elimination of possible hardship.
(2) All other words and expressions used but not defined in this chapter shall have same meanings as are assigned to them in the Act.
379. Application for alternate dispute resolution. Any importer or exporter inserted for resolution of any dispute under section 195-C may submit a written application for alternate dispute resolution to the Board, stating there in, the following particulars, namely:-
(a) The Collectorate of Customs or a Collectorate of Customs. Sales Tax and Central Excise or a Collectorate of Customs and Central Excise with whom a dispute has arisen;
(b) The particulars of the case;
(c) The grounds on the basis of which a resolution of a dispute is being sought by the applicant, duty supported with relevant documents;
(d) The extent or the amount of customs duty, other taxes and penalties etc, which the applicant agrees to pay, if, any;
(e) Details of amounts already paid, if any;
(f) The particulars of any person who will represent the applicant; and
(g) The applicant shall, if required, pay the remuneration of the members other than a public servant, of the committee to the extent and in the manner specified by the Chairman of the committee as laid down in rule 381.
380. Appointment of Alternate Dispute Resolution Committee. (1) The Board. After examination of the contents of an application by an importer or exporter and facts stated therein and on satisfaction that a dispute deserves consideration for resolution for the removal of hardship under section 195-C of the Act, shall constitute a committee consisting of an officer of Customs and two person from a notified panel of Chartered or Cost Accountants. Advocates or reputable taxpayers for examination of the issues involved in the dispute and for taking other actions as provided under sub-section (3) of section 195-C of the Act. It may refer the dispute to one of the standing committee constituted under sub-rule (2) of this rule.
(2) The Board, however, may also on its own, notify constitution of such committee or committees in each collectorate as a standing arrangement for resolution of disputes under these rules and the aggrieved importer and exporter may make a direct reference to such committee for resolution of the dispute under the rules with a copy to the
Board and Collector concerned. In case of an agreed decision, the Collector concerned may implement the agreed decision under intimation to the Board and Committee concerned.
(3) The aggrieved importer or exporter shall have the right to get the goods released from customs control under section 81 of the Customs Act, 1969.
(4) The Board may appoint one of the members of the committee, other than a public servant, to be its Chairman.
(5) The Board may specify the time within which the committee staff be required to submit its report to the Board:
Provided that the time so specified may, if request by the Chairman of the committee for reasons to be recorded in the request, be extended by the Board to such extent and subject to such conditions and limitations as it may deem proper.
381. Remuneration of the members of the committee. (1) The applicant shall pay members of the committee, other than public servants, remuneration covering traveling allowance and daily allowance.
(2) The extent and amount of remuneration and the manner of payment thereof shall be decided by the Chairman to be followed by the committee which under intimation to the applicant.
382. Working of the Committee. The Chairman of the Committee shall be responsible for deciding the procedure to be followed by the committee which may inter alia. Include the following, namely:-
(a) to decide about the place of sitting of the committee;
(b) to specify date and time for conducting proceedings by the committee;
(c) to supervise the proceedings of the committee;
(d) to issue notices by courier, registered post or electronic mail to the applicant;
(e) to requisition and produce relevant records or witnesses from the Collectorate or other concerned quarters;
(f) to ensure attendance for hearings either in person or through an advocate, representative or a tax consultant;
(g) to co-opt any other technical, professional or legal expert or specialist or tax consultant;
(h) to consolidate recommendations of the committee and submission of the conclusive report to the Board; and
(i) for any other matte covered under this chapter;
383. Recommendations of the committee, (1) The committee may determine the issue and may thereafter seek further information or data or expert opinion or make or cause to be made such inquires or audit as it may deem fit. The committee shall formulate its recommendations in respect of any matter mentioned n sub-section (1) of section 195-C of the Act.
(2) The Chairman of the committee shall send a copy of the recommendations of the committee to the Board, applicant and the concerned collector simultaneously;
384. Reconsideration by the committee. (1) The Board of its own motion, or on the request of the applicant, may refer back the recommendations of the committee for rectification of any obvious error or for reconsideration of the facts not considered earlier.
(2) The committee after rectification of the error or consideration of the facts as aforesaid shall furnish to the Board its fresh or amended recommendations within such period as specified by the Board.
385. Decision of the Board, (1) The Board, after examining the recommendations of the committee, shall finally decide the dispute and make such orders as it may deem fit for the resolution of the dispute under intimation to the applicant, the Chairman of the committee and the concerned Collectorate.
(2) On receipt of the Board’s order as aforesaid, the concerned Collectorate shall implement the order in such manner and within such period as may be specified by the Board in the order.
386. Appeal against the order. In case the aggrieved person is not satisfied with the orders of the Board, issued under sub-rule (1) of rule 385, he may file an appeal in the manner specified in sub-section (6) of section 195-C of the Act.
Secretary (Customs Budget)