Introduction: The recent communication from the Central Board of Indirect Taxes & Customs (CBIC), through DO No. 13/News Letter/CH(IC)/2024, sheds light on various pertinent matters concerning the department’s activities and responsibilities. From election vigilance to revenue collection efforts and anti-smuggling operations, the newsletter provides a comprehensive overview of CBIC’s endeavors.
Detailed Analysis
1. Election Vigilance: With general elections looming, CBIC emphasizes the importance of enforcing the Model Code of Conduct. The Standard Operating Procedure (SOP) for Preventive Vigilance Mechanism aims to curb the flow of suspicious cash, illicit items, and other contraband during elections. The introduction of the Electronic Seizure Management System (ESMS) by the Election Commission of India underscores the need for strict adherence to the SOP for nodal officers.
2. Revenue Collection Efforts: As the fiscal year draws to a close, CBIC focuses on maximizing revenue collections through legitimate means. The (Pr.) Chief Commissioners of Customs and GST are urged to make concerted efforts to enhance collections in the remaining days.
3. Anti-Smuggling Operations: The newsletter highlights successful anti-smuggling operations, including the seizure of cocaine worth Rs 15 crore and significant gold confiscations. These operations demonstrate CBIC’s commitment to curbing illegal activities and safeguarding national interests.
4. GST Evasion Crackdown: The Directorate General of GST Intelligence (DGGI) reveals a sophisticated scheme orchestrated to evade GST payments in the iron and steel industry. Coordinated search operations led to the apprehension of key individuals involved in facilitating the clandestine clearance of goods, resulting in the prevention of substantial tax evasion.
5. Commendable Achievements: CBIC acknowledges the exemplary performances of its members in the All India Civil Services Athletics Championship 2023-24. The achievements of Ms. Raji Austin and Sh. Amalraj PG highlight the dedication and talent within the CBIC community.
Conclusion: The newsletter from CBIC serves as a comprehensive update on the department’s activities, ranging from election vigilance to revenue collection efforts and anti-smuggling operations. It underscores CBIC’s commitment to upholding regulatory standards, combating illicit activities, and recognizing the commendable efforts of its members. Through proactive measures and diligent enforcement, CBIC continues to play a vital role in ensuring compliance and safeguarding national interests.
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Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes & Customs
DO No. 13/News Letter/CH(IC)/2024 Dared: 26th March,2024
Dear Colleague,
I hope that the festivities during the long weekend were well spent with near and dear ones. Just as the colours of Holi bring joy and vibrancy to life, symbolize the triumph of good over evil, the arrival of spring, and the rejuvenation of nature, they also act as a reminder of our role in bringing positivity and hope to the people we serve.
General elections are around the corner, and the Model Code of Conduct has kicked in. CBIC has an important role to play in the conduct of free and fair elections through its enforcement mechanisms. The Board has recently issued the Standard Operating Procedure (SOP) for stepping up of Preventive Vigilance Mechanism by field formations of CBIC with an objective to check the flow of suspicious cash, illicit liquor, drugs/ narcotics, freebies and other smuggled goods during elections. The Election Commission of India has, for the first time, introduced the Electronic Seizure Management System (ESMS) for reporting interception/ seizures made by various enforcement agencies on a real-time basis. Therefore, the SOP need to be understood properly so that the nodal officers are aware of their responsibilities.
It is that time of the year when all eyes are on the revenue collections. I am sure that the (Pr.) Chief Commissioners of Customs and GST will make all-out efforts to maximize collections in the last few days by all possible legitimate means.
On the anti-smuggling front, the Directorate of Revenue Intelligence (DRI) officers unearthed an international syndicate and seized 1.59 kg of cocaine, valued at about Rs 15 crore in the illicit market. The syndicate engaged in the smuggling of Narcotic Drugs and Psychotropic Substances (NDPS) into India from Africa. Both the carrier and the recipient were arrested.
Also, in a series of seizures, officers of Airport Commissionerate, Mumbai Customs Zone III seized over 4.75 Kgs of Gold valued at about Rs. 2.77 Crore. In one of the cases, the shift manager working at a Food Retail Outlet in CSMI Airport was caught with Gold dust by the Customs officials in coordination with CISF personnel. Cases like these outline that deterrence requires constant vigil and consistent coordination with other agencies.
The Directorate General of GST Intelligence (DGGI), Meerut, on the basis of intelligence and analysis of call records spanning several months, successfully conducted coordinated search operations targeting a group of people (known by the term “passers” in the industry) who facilitate clearance of goods from the iron and steel units of Muzaffarnagar without payment of GST. During investigations, it was learnt that major manufacturers of TMT bars in the area had outsourced the transportation of non-duty paid goods from the factory gate to the dealers/ recipients. These “passers” take contracts (on per tonne basis) of clandestine clearance and transportation of goods from the iron and steel units till the buyers/ dealers. This intricate scheme was meticulously orchestrated to evade the scrutiny of regulatory authorities by creating documents in name of non-existent companies to be accompanied along with the vehicles to camouflage the clandestine removal. The analysis of seized documents revealed a staggering pattern of tax evasion, with the total value of illicitly cleared goods amounting to more than Rs. 800 Crore, involving GST evasion of more than Rs. 120 Crore. One of the Directors of a major manufacturing firm has also been apprehended. The officers involved deserve compliments!
Before I put my pen down, I would like to appreciate the outstanding efforts of the participants from CBIC in the All India Civil Services Athletics Championship 2023-24 at Chandigarh. Ms. Raji Austin from Thiruvananthapuram Zone secured first place in the 400m race, and Sh. Amalraj PG from NACIN, Bengaluru secured a Gold Medal in the 4*400m Relay race. Stellar performance!
Until next week!
Yours sincerely,
(Sanjay Kumar Agarwal)
All Officers and Staff of the Central Board of Indirect Taxes & Customs.
