In the weekly newsletter dated 29th July 2024, Chairman Sanjay Kumar Agarwal of the Central Board of Indirect Taxes & Customs (CBIC) addresses key updates. Emphasizing the significance of the Union Budget, he underscores its impact on tax policy clarity for taxpayers. The focus remains on simplifying and streamlining tax structures to foster trade efficiency and resolve disputes. Notably, efforts are underway to digitalize customs processes, aligning with India’s growth ambitions. Operational highlights include successful interceptions by Mundra Customs, seizing Tramadol shipments worth Rs. 110 crores, exposing a major drug trafficking network. Meanwhile, CGST Vadodara-I Commissionerate’s data analytics uncovered a substantial Rs. 169.58 crores fake invoicing scheme, highlighting ongoing enforcement against tax fraud. Chairman Agarwal urges timely compliance with promotions and reaffirms CBIC’s commitment to transparent, effective governance.
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes & Customs
DO No. 31/News Letter/CH(IC)/2024 Dated: 29th July, 2024
Dear Colleague,
As is expected from ardent tax administrators, I am sure all my CBIC brethren would have closely followed the Union Budget. This is the time when a lot of discussion happens on the changes and we should be aware of the contours of the Budget to dispel any confusions or doubts in the mind of taxpayers. The overarching goal for indirect taxes is clear – to create a simplified, efficient tax system that supports India’s growth and development aspirations. Hon’ble FM has announced that a comprehensive review of the rate structure will be undertaken over the next six months to rationalise and simplify the structure for ease of trade, removal of duty inversion and reduction of disputes. Additionally, there will be a concerted effort to deepen digitalization, particularly within Customs.
I am happy to inform that the DPC for JTS regularisation for the vacancy Year 2013-14 was conducted in UPSC today. The Board is keen that the regularisation exercise be completed for subsequent years at the earliest. Therefore, requisite documents have been sought from the field formations. It is an earnest request to urgently comply with the timelines set by the Board in this regard. The Board endeavours to carry out only regular promotions in the future.
Based on intelligence gathered by SIIB Mundra, one export consignment of a merchant exporter with declared description as Diclofenac Tab and Gebedol Tab was intercepted and examined. While the declared item was found in the front end of the container, examination revealed boxes containing undeclared medicine strips bearing marking as Tramaking 225′ with the composition Tramadol Hydrochloride. Neither the strips nor the boxes had any details of the manufacturer. Tramadol is notified as a psychotropic substance under the NDPS Act and has gained notoriety in recent times for its abuse as a synthetic opioid drug. In a follow up action against the same exporter, another consignment was seized and an abandoned warehouse in Ahmedabad was located with more quantities of Tramadol. Overall, so far, the seizures are to the tune of 68,00,000 tablets of Tramadol with a street value of about Rs. 110 Crores in the grey market. Excellent detection by the officers of Mundra Customs!
Fighting against the menace of fake ITC, the officers of CGST Vadodara-I Commissionerate, utilized data analytics to uncover a fake invoicing racket. The investigation against three suspect firms revealed that they had availed and passed fake input tax credit to the extent of Rs. 169.58 crores on the strength of invoices received from non-existent entity without actual receipt of goods. Kudos to the team for unearthing the fraud!
Until next week!
Yours sincerely,
(Sanjay Kumar Agarwal)
All Officers and Staff of the Central Board of Indirect Taxes 86 Customs.
