India's Goverment Proposes Law Change for Recovery of Customs Duty

Seeking to recover taxes worth thousands of crores of rupees, Government on July 21, 2011 approved a bill for introduction in Parliament to get the Customs show cause notices revalidated, after they were held invalid by Supreme Court on "technical grounds".

The Union Cabinet cleared a bill to amend the Customs Act, 1962 to get specified customs officers recognised for assessment of import duty.

Such a recognition to these customs officials would be from retrospective effect.

As a consequence of the amendment bill, to be introduced in the ensuing session of Parliament next month, government would be able to recover customs duty worth several thousands of crores, Information and Broadcasting Minister Ambika Soni said after a Cabinet meeting.

"Officers of the Directorate of Revenue Intelligence (DRI) will alone have issued notices involving customs duty to the tune of over Rs 7,500 crore...Also tax evaders will not get benefited at the expense of exchequer on a mere technical ground," she said.

A large number of show cause notices were held invalid by the Supreme Court on the ground that they were not issued by ''proper officers''.

The proposed amendment...would safeguard government revenue involved in the show cause notices issued by different tax authorities, including Commissionerates of Customs, DRI, Directorate General of Central Excise Intelligence and Central Excise Commissionerates, the minister said.