Disposal of confiscated vehicles – CAG objection worries Revenue
A Mercedes Benz car seized in November 1986 and absolutely confiscated in November 1987 could be disposed of only in 2003. Just imagine what would happen to a car lying with Customs for sixteen years? And what can be recovered by selling that junk? Obviously the Board is worried and more so because it is becoming an Audit para. So the Board wants such vehicles to be disposed of early and what little could be salvaged to be salvaged and so instructions are issued:-
• the vehicles are to be properly garaged and particular care taken of spare parts and tools.
• The engines of the vehicles (and not the vehicles themselves) should be run, if possible, twice a week to keep the parts under lubrication.
• Where suitable garage facilities are not available, temporary sheds may be erected or the vehicles handed over to an Automobile Association
• Heads of departments have been given the power to spend up to Rs 600 per annum to maintain the vehicles. Yes that works out to a princely sum of Rs 50/- per month - and this too subject to certain conditions. If necessary even a mechanic should be hired to maintain the vehicle.
• Adjudication should be promptly done.
• Confiscated vehicles may be used for government work but for only anti-smuggling activities.
• Seized vehicles should not be used even for official purposes.
• Confiscated vehicles should be sold if they cannot be used by the department, but only after taking the prior permission of the Board.
• The vehicle should be sold at the best possible price so as to avoid any dispute with the owner regarding the adequacy of the price at which it was sold in case the party succeeds in appeal.
Obviously, Board is not aware of a case we reported recently, where the Tribunal held that the confiscated car cannot be sold while the appeal is pending.
Source: CBEC’s letter F.NO.715/7/2005 -CUS(AS) dated 2nd September 2005 addressed to Chief Commissioners and Commissioners.