Revenue Collections - by means fair or foul?
WE received this mail from a harried importer.
Is it fair to collect the revenue in this way?
We are a company of Tractor Manufacturer; we got various FMS scrips against our exports and regularly were using these FMS licenses to pay the import duties while importing the material.
Now, from September 13 onwards, Customs IGI Air Port are denying to clear the consignments under the said FMS licenses and demanding the 30% duties of import as hard CASH and remaining 70% to be debited vide the said FMS license.
We are of the view that FMS license is admissible to pay the 100% of customs duties (whether it is BCD, Cess on BCD & SAD) by way of debiting the same under the FMS license.
Further, we wanted to put forward our contention to the Officer concerned in this regards so we tried to meet and tried to know their view in this--
I met with Deputy Commissioner of Customs clearance IGIAir Port in this regard.
As per him, instructions from Finance ministry are given to the department for recovery of additional revenue, as there is a severe shortage of funds. Hence, all the shipments, which are being cleared under licenses, are required to have 30% duty submission in cash.
I explained to him that we already are paying more than 90% of duties in cash and only 10% duties are being covered under licenses. Hence a lenient view is to be granted to us.
He, however, said that there are orders, which are being followed, and no exception shall be granted to anyone.
On asking for any written order / notification as a support, he told that these orders have not been passed as written, only verbal orders have been passed.
On again requesting him a lenient view, he said that we are free to meet his superiors in this regard.
I then approached Additional Commissioner of Customs who also echoed the same statements earlier presented by Deputy Commissioner.
He also indicated that it might be possible that from December onwards, Consignees may have to pay 100 % duties in cash and no clearance may be done under FMS / FPS licenses.
On asking for any document / statement/ Notification for statutory backup for this demand, he also said that these orders are only verbal, not written.
I, however, presented a request letter to him which I was carrying in this regard and requested with him that we are already paying 90% of duties through cash and only 10% of the duties are being paid by licenses.
He however said that he cannot do much in this context as the orders are from higher above.
And if he grants us permission to clear the shipments under license then other consignees shall also approach them for the same.
He however put his signatures on the said letter and told us to approach Deputy Commissioner for this present shipment to be cleared under license.
As it was late in the evening and the Deputy Commissioner had left for the day, we presented the file again to the Deputy Commissioner on 26th September. He was busy in meetings the whole day and there were no developments. On 27th September, he was approached again with the file. However, we were again told that we have to pay 30% duty in cash without any exception.
He is agitated that the Customs Department is collecting 30% of customs duties by way of hard cash without having any statutory backing behind this unjustified demand.
The next few months are going to be difficult for the assessees as the Department is going to use all means to meet their targets.