Amendment in Customs Act will make life tough for evaders

Customs duty evaders will no longer be able to challenge show-cause notices on technical grounds relating to jurisdiction. The Union Cabinet has approved an amendment in the Customs Act, 1962 that allows specified Custom officers to be designated as ‘Proper Officers' for the assessment of the duty. When passed this would validate a large number of show cause notices that have been rendered invalid as a consequence of a judgement of the Supreme Court. Officers of the Directorate General of Revenue Intelligence (DRI) alone have issued such notices involving custom duty to the tune of over Rs 7,500 crore. “Tax evaders will not get benefitted at the expense of the exchequer on mere technical grounds of jurisdiction. This would provide certainty in revenue matters by sending proceedings before various judicial and quasi judicial authorities,” said the Union Information and Broadcasting Minister, Ms Ambika Soni, after the Cabinet meeting. The Supreme Court had ordered on February 18 that only a custom officer who has been assigned the specific functions of assessment and reassessment of custom duty in the jurisdictional area where the import has been affected, by either the board or the commissioner of customs, is competent to issue show cause notice. It was held that the commissioner of the Preventive Wing would not have jurisdiction to issue a show-cause notice instantly since the specific function of assessment and re-assessment was not assigned to him. Now, the Government expects, this situation will change. - www.thehindubusinessline.com