Page 77 - ELT_15th July 2020_Vol 373_Part 2

2020 ] DEPARTMENTAL CLARIFICATIONS T25

18. What will be the method of inventory control method in Section
65 units? Whether First in First Out (FIFO) method can be
followed?
Response : The Generally Accepted Accounting Principles will
be followed for inventory control in a Section 65 unit. Thus FIFO
method can be followed.
19. What is the procedure and documentation requirements for re-
entry of manufactured goods, returned by the customers for repair,
in the premises?
Response : Once the goods are cleared from the warehouse, they
will no longer be treated as warehoused goods. Thus if the
resultant goods cleared from the warehouse are returned by the
customer for repair, they will be entered as DTA receipts (this is
provided in the accounting form). After repair, when the same is
cleared from the warehouse, the same will be entered in the
prescribed accounting form.
If the goods were exported and subsequently rejected or sent back
for repair by the customer, then the goods upon re-import have to
be entered as Imports receipts in the accounting form. The
relevant customs notification for re-imports has to be followed
while filing the Bill of Entry for re-import of the goods.
20. What is the procedure for surrender of licence for a Section 65
unit?
Response : Since the unit operating under Section 65 is also
licensed as a Private Bonded warehouse under Section 58 of the
Customs Act, the procedure for surrender of licence will be as per
the regulation 8 of the Private Warehouse Licensing Regulations,
2016. A licensee may therefore, surrender the licence granted to
him by making a request in writing to the Principal Commissioner
of Customs or Commissioner of Customs, as the case may be. On
receipt of such request, the licence will be cancelled subject to
payment of all dues and clearance of remaining goods in such
warehouse.
[Source : http://www.cbic.gov.in]

CESTAT

CESTAT — Procedure for e-hearing of urgent applications
Applications of urgent nature will be heard through video conferencing
platform. The standard operating procedures, manner of listing of cases, protocols
to be observed and the technical requirements are detailed in Annexure-I. The
parties who desire that such applications should be heard through video
conferencing may file a request in the Form as prescribed in Annexure-II, to the
concerned Assistant Registrar. The system of e-hearing of urgent Applications
will remain in force until further orders.
This notification shall come into force with effect from 1 July, 2020.
This issue with the approval of the Hon’ble President, CESTAT.

EXCISE LAW TIMES  15th July 2020  77