40 case files found missing in import commissionerate

MUMBAI, NOV 23: An inspection by the Directorate of Inspection of Customs and Central Excise in the import commissionerate in Mumbai has r...

MUMBAI, NOV 23: An inspection by the Directorate of Inspection of Customs and Central Excise in the import commissionerate in Mumbai has revealed that 40 files pertaining to adjudication cases are missing. In fact, from an initial number of 170 files identified as missing out of 1,868 cases that DICCE examined, 65 files were traced during the inspection and an equal number were reconstructed.

Informed sources say the report of the additional director general, DICCE, D S Karant has been sent to Delhi earlier this month. The inspection covered adjudication cases of 1999 and upto July 2000.

K P Singh, the commissioner who was handling imports during this period, was transferred out to the directorate of anti-evasion, Central Excise last Friday.The missing files are mostly of assessment groups I natural products and petroleum, 2 B II plastics, etc, V-B electronics, cars, etc and VI project imports etc.

In fact, Karant is learnt to have said in his report that other agencies like the DRI, the customsacirc;euro;trade; own central intelligence unit and vigilance should take up such inquiries. He is also learnt to have suggested an overhaul of the valuation and related penalisation system.

DICCE was asked to conduct a special inspection following reports that adjudication orders were being unusually delayed and were not available for review by the department within the stipulated one year period. The purpose of a review is to plug revenue leakage possibilities.

DICCE has reportedly found 33 cases which have become time-barred. In a very large number of cases, in fact, the orders-in-original were issued after August 2000 when the inspection had already started, sources said. And further, the review cell is unable to track adjudications if not received or delayed.

It is also learnt that Karant has found, in most cases of adjudication, the absence of efforts to make market inquiries to arrive at the correct market price, so as to ascertain the margin of profit made by the importer.

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With detailed scrutiny of some sensitive items like electronic goods, cars and marble, the report had found that redemption fines and penalties imposed in the adjudication orders are low enough not to neutralize the margin of profit allegedly made, resulting in the continued undervalued imports. In one commodity, the assessable value fixed in 1997 seemed to have been taken as it is, without updating, by both assessing officers and adjudicating officers.

More importantly, in the case of imports of secondhand diesel engines, the values suggested by officers in docks were overruled and the importersacirc;euro;trade; declared values were taken. In some cases, the market value is 75 per cent more than the accepted assessable value.