Inspection ordered by the CBEC chief sends ripples through Custom House

In fact, the inspection is likely to be extended to other commissionerates like Export, Nhava Sheva Port and the Air Cargo Complex.

Since August 14, when Karant started his inspection, there’s been a flurry of activity in the commissionerate since an unspecified number of files are untraced, sources reveal. As a ripple effect, officers in exports have also been ordered to complete files that have been pending for long periods of time.

Review is a departmental procedure, wherein the senior officer examines the merits of the order-in-original/adjudication order passed at the time of assessment. The adjudication process comes into play only when there is a dispute at the time of import (or export). Pending the adjudication, the importer may pay duty under protest, or give a bank guarantee and provide a bond and clear his consignment.

In serious cases, seizure may also happen, and a show cause notice is issued which is then adjudicated. A copy of the adjudication order is sent to the review department for the benefit of an internal review on merits.The officer’s order itself is reviewed by his senior, and if it is upheld, the order becomes final from the department. If not, an appeal is filed either to the commissioner (appeals), or the CEGAT, (the tribunal for customs and excise case) depending upon the rank of the adjudicating officer. The importer can, similarly, appeal against the adjudication order before the commissioner (appeals) or CEGAT.

It is the process of review within the department that seems to be now at the centre of the inspection exercise. That is because review itself leads to identification of shortcomings of adjudication and plugs revenue leakage. The Directorate of Inspection is expected to tabulate all the flaws and failings intentional or otherwise that are visible in the system.

Karant, when contacted, refused to speak to this reporter.