What is intelligence? Ask DGCEI or DRI
DGCEI stands for Directorate General of Central Excise Intelligence and DRI for Directorate of Revenue Intelligence. The officers working in these organizations are required to gather intelligence of tax evasion or illegal importation by various means like developing informers and information gathered from various sources. But over a period of time, the definition of intelligence is taking a new shape. Intelligence is defined as actionable information.
Recently a DGCEI formation demanded duty on Agricultural Grade Zinc Sulphate ( AGZS ) used as micronutrient. The intelligence is:
Agricultural Grade Zinc Sulphate was classifiable under Ch 28332610 of the Central Excise Tariff attracting NIL rate of duty. However, while making amendments to the central excise tariff in tune with the 8 digit customs tariff, the entry 28332610 was omitted with effect from 1.1.2007. Thus AGZS became classifiable under sub heading 28332990 attracting duty at the rate of 16%. However, the Government issued Notification 36/2007 CE dated 9.10.2007 exempting the AGZS used as micronutrient. So during the period from 1.1.2007 to 8.10.2007, all the manufacturers have to pay duty on AGSZ .
Now, in the maze of amendments, the government forgets to continue the exemption for some time and this is INTELLIGNCE ! As per the DGCEI , the assessees have wilfully continued to clear the goods at Nil rate from 1.1.2007 with an intention to evade payment of duty by suppressing the fact that there was no exemption for the interregnum period.
The intelligence of DRI is no better. Recently DGFT banned export of non basmati rice and the related notifications were amended for nearly 8 times in 15 days. In 02.11.2007 , we gave a list of amending notifications and on 11.12.2007, DRI issued an Alert Circular listing out all the amendments and passed it on as intelligence to the field formations, with a direction that “ If any case is booked on the basis of this Circular, the same may be brought to the notice of this office. ”
Moral: You don't need to go too far to gather intelligence – watch your Board closely; they may forget to issue a notification or watch the DGFT; they may issue too many notifications. And lo and behold there are cases before you!