NEW DELHI, JUNE 28: Indian Oil has approached the government for permission to move Customs and Excise Gold Control Appellate Tribunal (CEGAT) against the Rs 2,000 crore duty evasion notice issued by Calcutta Customs.IOC has approached Committee of Secretaries (COS) headed by Cabinet Secretary to appeal to CEGAT against the show-cause-cum-demand notice slapped by the Calcutta Customs for payment of over Rs 2,000 crore for the alleged customs duty evasion on import of petroleum products, IOC sources said.The Collector of Customs (Port), Calcutta, on March had slapped the show-cause notice on IOC for customs duty evasion of about Rs 976 crore along with 100 per cent penalty and 20 per cent interest adding up to Rs 2,000 crore.Sources said that show-cause notice was issued to IOC alleging that the company had suppressed pre-shipment detention demurrage charges for the period before 1998. The notice also charged IOC with suppression of facts and misdeclaration.The corporation also said the Rs 2,000 crore customs duty evasion notice slapped on it would have to be paid by Oil Coordination Committee (OCC) in case the state-owned company loses the case in CEGAT.IOC has intimated to the government on this saying the amount would be paid from OCC's oil pool account, sources said. Sources said that IOC was planning to contest the show-cause notice at CEGAT based on August 14, 1991 notification which said demurrages were not included and are not dutiable.The Petroleum Ministry has been apprised of the entire development in the case and its probable impact on the oil pool account to the extent which applies to the Administered Pricing Mechanism (APM), the sources said.They said even the Petroleum Ministry had taken up the issue with the Law and the Finance Ministries.Sources said the Customs Collector (Calcutta), empowered to hear the case on behalf of all the ports, had included the customs value in the demurrage charges.IOC imports eight petroleum products and the duty demand pertains to only five of the products imported through all the major ports in the country, the sources said.The five imported products on which the duty demand has been made are Motor Spirit (Petrol), High Speed Diesel (HDS), Superior Kerosene Oil (SKO), Furnace Oil (FO) and Aviation Turbine Fuel (ATF).
