2003 (5) TMI 516 - HC - Central Excise

Customs Duties Exemption Quashed, Revenue Recovery Efforts, Officials Investigated

PEOPLE'S UNION FOR CIVIL LIBERTIES Versus UOI and ORS.

PEOPLE'S UNION FOR CIVIL LIBERTIES Versus UOI and ORS. - TMI Issues:1. Quashing of customs duties exemption certificates2. Collection of customs duty on unauthorized equipment3. Prosecution of officials from the Director General of Health Services4. Actions taken based on Rosha Committee's Report5. Revenue recovery by the Finance Department6. Actions by the Income Tax Department7. Actions by the Director General of Health Services8. Cases forwarded for investigation by the CBI1. Quashing of customs duties exemption certificates:The petition sought to quash all customs duties exemption certificates issued by the Director General Health Services. The Rosha Committee was appointed by the government, which submitted a report leading to actions by the authorities. The Committee's report resulted in investigations into 472 institutions, with a total duty quantified at Rs. 223.75 crores. Show cause notices were issued, covering Rs. 218.12 crores, and in 347 cases adjudicated, with Rs. 139.36 crores to be recovered. However, only Rs. 14.22 crores were actually recovered, with Rs. 162.45 crores remaining unrecovered due to stays.2. Collection of customs duty on unauthorized equipment:The petition also aimed to direct the collection of customs duty on equipment brought in based on unauthorized exemption certificates. The report submitted by Shri S.K. Mishra detailed that 366 cases were identified, with a total duty quantified at Rs. 223.75 crores. Show cause notices were issued for Rs. 218.12 crores, and in 347 cases adjudicated, Rs. 139.36 crores were to be recovered. Notably, only Rs. 14.22 crores were successfully recovered, with Rs. 162.45 crores remaining unrecovered due to stays.3. Prosecution of officials from the Director General of Health Services:The petition sought to identify and prosecute officials from the Director General of Health Services. Actions were taken based on the Rosha Committee's recommendations, leading to investigations into 472 institutions. A significant amount of revenue was quantified for recovery, with actions pending against some cases and assurances given for future actions.4. Actions taken based on Rosha Committee's Report:Various departments took actions based on the Rosha Committee's report. The Finance Department recovered a substantial amount of revenue through customs and the Income Tax Department. The Income Tax Department examined 14 cases, taking actions against some assesses while assuring the court of pending actions where necessary.5. Revenue recovery by the Finance Department:The Finance Department recovered revenue through customs duties, with a detailed report submitted by Shri S.K. Mishra outlining investigations into institutions, issuance of show cause notices, and adjudication of cases. Despite successful recovery in some cases, a significant amount remained unrecovered due to stays.6. Actions by the Income Tax Department:The Income Tax Department examined 14 cases in response to the Rosha Committee's report. Actions were taken against some assesses, while in other cases, pending actions were assured to be completed in due course. The department provided a consolidated action report outlining the steps taken against the erring assesses.7. Actions by the Director General of Health Services:Dr. P. Ravindran filed an affidavit detailing actions taken by the Director General of Health Services. Out of 396 cases examined, CDECs were withdrawn or canceled for 386 institutions/hospitals. The report provided state-wise details of institutions and the actions taken in response.8. Cases forwarded for investigation by the CBI:The Committee forwarded six cases to the CBI for investigation. Charge-sheets were filed in two cases, one case was closed due to lack of evidence, and in one case, a report was submitted for closure. Additionally, departmental actions were suggested in two cases. The CBI's actions were in response to the cases identified for investigation.