Customs

Clause 80 of the Bill seeks to amend section 28 of the Customs Act, so as to– (i) insert a proviso in sub-section (2) thereof to provide that where notice under clause (a) has been served and the proper officer is of the opinion that the amount of duty with interest leviable under section 28AA or the amount of interest, as the case may be, as specified in the notice, has been paid in full within thirty days from the date of receipt of the notice, no penalty shall be levied and the proceedings in respect of such person or other persons to whom the said notice is served under clause (a) of sub-section (1) shall be deemed to be concluded; (ii) impose a penalty of “fifteen per cent.” in place of “twentyfive per cent.” of the duty referred to in sub-section (5) thereof; (iii) insert an Explanation after Explanation 2 thereof to declare that the proceedings in respect of any case of nonlevy, short-levy, non-payment, short-payment or erroneous refund where show cause notice has been issued under subsection (1) or sub-section (4), as the case may be, but an order determining duty under sub-section (8) has not been passed before the date on which the Finance Bill, 2015 receives the assent of the President, shall, without prejudice to the provisions of sections 135, 135A and 140, as may be applicable, be deemed to be concluded, if the payment of duty, interest and penalty under the proviso to sub-section (2) or under sub-section (5), as the case may be, is made in full within thirty days from the date on which such assent is received.

Clause 81 of the Bill seeks to amend section 112 of the Customs Act, so as to substitute sub-clause (ii) of clause (b) thereof to specify a penalty not exceeding ten per cent. of the duty sought to be evaded or five thousand rupees, whichever is higher. The clause further seeks to provide that where such duty as determined under sub-section (8) of section 28 and the interest payable thereon under section 28AA, is paid within thirty days from the date of communication of the order of the proper officer determining such duty, the amount of penalty liable to be paid by such person under this section shall be twenty-five per cent. of the penalty so determined.

Clause 82 of the Bill seeks to amend section 114 of the Customs Act, so as to substitute clause (ii) thereof to specify a penalty not exceeding ten per cent. of the duty sought to be evaded or five thousand rupees, whichever is higher. The clause further seeks to provide that where such duty as determined under subsection (8) of section 28 and the interest payable thereon under section 28AA, is paid within thirty days from the date of communication of the order of the proper officer determining such duty, the amount of penalty liable to be paid by such person under this section shall be twenty-five per cent. of the penalty so determined.

 Clause 83 of the Bill seeks to amend section 127A of the Customs Act, so as to omit the words “in any appeal or revision, as the case may be,”, occurring in the proviso to clause (b) thereof.

Clause 84 of the Bill seeks to amend section 127B of the Customs Act, so as to omit sub-section (1A) thereof.

Clause 85 of the Bill seeks to amend section 127C of the Customs Act, so as to omit sub-section (6) thereof.

Clause 86 of the Bill seeks to omit section 127E of the Customs Act.

Clause 87 of the Bill seeks to amend section 127H of the Customs Act, so as to omit the Explanation thereto.

Clause 88 of the Bill seeks to amend sub-section (1) of section 127L of the Customs Act, so as to omit certain words.

Customs Tariff

Clause 89 of the Bill seeks to amend Chapters 27, 72, 73 and 87 of the First Schedule to the Customs Tariff Act in the manner specified in the Second Schedule so as to revise tariff rates in respect of the tariff items specified therein.

Central Excise

Clause 90 of the Bill seeks to amend section 3A of the Central Excise Act with a view to insert Explanation 3 therein, so as to explain that, for the purposes of sections (2) and (3) of section 3A of the Central Excise Act, the word “factor” includes “factors”.

Clause 91 of the Bill seeks to amend section 11A of the Central Excise Act, so as to— (i) omit sub-sections (5), (6) and (7) thereof; (ii) omit the words “or sub-section (5)” occurring in subsections (7A), (8) and clause (b) of sub-section (11); (iii) amend Explanation thereof; (iv) insert a new sub-section (16) therein to provide that the provisions of this section shall not apply to cases where the liability of duty not paid or short -paid is self-assessed and declared as duty payable by the assesse in the periodic returns filed by him, and in such case, recovery of non-payment or shortpayment of duty shall be made in such manner as may be prescribed. (v) substitute Explanation 2 thereof to provide that any nonlevy, short-levy, non-payment, short-payment or erroneous refund where no show cause notice has been issued before the date on which the Finance Bill, 2015 receives the assent of the President, shall be governed by the provisions of section 11A as amended by the Finance Act, 2015;

Clause 92 of the Bill seeks to substitute a new section for section 11AC of the Central Excise Act so as to rationalise the penalty provisions contained therein.

 Clause 93 of the Bill seeks to amend section 31 of the Central Excise Act, so as to omit the words “in any appeal or revision, as the case may be,” occurring in the proviso in clause (c) thereof.

Clause 94 of the Bill seeks to amend section 32 of the Central Excise Act, so as to omit the proviso to sub-section (3) thereof.

Clause 95 of the Bill seeks to amend section 32B of the Central Excise Act, so as to substitute the words “the Member” for the words “, as the case may be, such one of the Vice-Chairmen”.

Clause 96 of the Bill seeks to amend section 32E of the Central Excise Act, so as to omit sub-section (1A) thereof.

Clause 97 of the Bill seeks to amend section 32F of the Central Excise Act so as to omit certain words therefrom.

Clause 98 of the Bill seeks to omit section 32H of the Central Excise Act.

Clause 99 of the Bill seeks to omit the Explanation to subsection( 1), of section 32K of the Central Excise Act.

Clause 100 of the Bill seeks to amend sub-section (1) of section 32-O of the Central Excise Act, so as to omit certain words therefrom.

 Clause 101 of the Bill seeks to amend sub-sections (4) and (5) of section 37 of the Central Excise Act so as to substitute the words “two thousand rupees” with the words “five thousand rupees”.

Clause 102 of the Bill seeks to amend the notification of the Government of India in the Ministry of Finance issued under subsection (1) of section 5A of the Central Excise Act bearing number G.S.R. 163 (E), dated the 17th March, 2012 in the manner specified in the Third Schedule so as to amend the said notification retrospectively for the period as specified in the said Schedule. Clause

103 of the Bill seeks to amend the Third Schedule to the Central Excise Act in the manner specified in the Fourth Schedule, so as to insert and amend certain entries therein. Central Excise Tariff Clause

104 of the Bill seeks to amend the First Schedule to the Central Excise Tariff Act in the manner specified in the Fifth Schedule so as to revise tariff rates in respect of certain tariff items.

Service Tax

Clause 105 of the Bill seeks to amend section 65B of 1994 Act so as to insert certain clauses, modify or clarify the scope of certain definitions and (a) to omit clauses (9), (24), and (49); (b) to omit certain words in clause (40), with effect from such date as the Central Governemtn may, by notification, appoint.

Clause 106 of the Bill of seeks to amend section 66B of 1994 Act so as to increase the service tax rate from twelve to fourteen per cent.

Clause 107 of the Bill seeks to amend section 66D of 1994 Act so as to modify the scope of the services specified in negative list. Clause

108 of the Bill seeks to insert an illustration in subsection (1) of section 66F of 1994 Act, so as to clarify the scope of that sub-section by means of an illustration. Clause

109 of the Bill seeks to amend section 67 of 1994 Act so as to substitute clause (a) of the Explanation to amplify the scope of the term “consideration”. Clause

110 of the Bill seeks to amend section 73 of 1994 Act so as to–– (a) insert a new sub-section (1B) to provide that the recovery may be made under section 87 of the self-assessed service tax, declared in the return but not paid, without service of any notice under sub-section (1); (b) omit sub-section (4A).

Clause 111 of the Bill seeks to substitute a new section for section 76 of 1994 Act relating to penalty for failure to pay service tax in cases other than by reason of fraud, collusion, will ful misstatement, suppression of facts or contravention of the provisions of the Act or the rules made thereunder with the intent to evade payment of service tax.

Clause 112 of the Bill seeks to substitute a new section for section 78 of 1994 Act relating to penalty for failure to pay service tax by reason of fraud, collusion, will ful mis-statement, suppression of facts or contravention of the provisions of the Act or the rules made thereunder with the intent to evade payment of service tax.

Clause 113 of the Bill seeks to insert a new section 78B so as to provide transitional provisions with respect to the amended sections 76 and 78 of 1994 Act.

Clause 114 of the Bill seeks to omit section 80 of 1994 Act.

Clause 115 of the Bill seeks to amend section 86 of 1994 Act so as to insert a proviso therein to provide that the cases specified thereunder shall be dealt in accordance with the provisions of section 35EE of Central Excise Act. Clause 116 of the Bill seeks to amend section 94 of 1994 Act relating to power to make rules so as to substitute clause (aa) therein.

Swachh Bharat Cess

Clause 117 of the Bill seeks to insert a new Chapter VI so as to levy a cess to be called the Swachh Bharat Cess, as service tax on all or any of the taxable services for the purposes of the Union for financing and promoting Swachh Bharat initiatives and any other purpose relating thereto.