Circular No. 107/2000 dated the 26th December, 2000Committee on Amount of Customs Duty Foregone
Subject : CWP No. 409/96-PUCL vs. Union of India - report Regarding.
As you are aware, the Hon'ble High Court of Delhi has been inquiring into import of medical equipments under Notification No. 64/88-Cus., dated 1.3.88, in respect of public interest litigation CWP No. 409/96-PUCL vs. Union of India. In pursuance of the High Court's decision, dated 18.10.1996, a one-man committee was set up to quantify the amount of Customs duty foregone; suggest steps to be taken to collect the Customs duty; and supervise and monitor recoveries of duty.
- Now, in pursuance of the Order, dated 24.11.2000 (copy enclosed), of the Hon'ble High Court of Delhi in CWP No. 409/96, Member (Customs) (Shri K.L. Verma), will act as one-man committee in place of Shri S.D. Mohile, Chairman, C.B.E.C. (since retired). In this regard, it has been decided by the Board that henceforth, the Director General (Inspection) will be responsible for quantification, supervision and monitoring of the recoveries under the overall charge of Member (Custom). All the relevant files and documents pertaining to one-man committee headed by Shri S.D. Mohile will be transferred to Director General (Inspection) within a fortnight from the date of issue of this instruction. Director General (Inspection) will monitor the recoveries on a case-to-case basis and prepare the periodic progress report to be filed in the Hon'ble High Court of Delhi by the one-man committee. This report will be furnished to the Member (Customs) on a bi-monthly basis. The last status report reflected the position as on 30.9.2000.
- All the Commissioners of Customs are directed to send all the communications/reports, etc. regarding investigations and recoveries with regard to cases of misuse of notification 64/88-Cus., dated 1.3.88, referred to them either by the Rosha Committee or the Ministry of Health, to the Director General (Inspection).
- The High Court had set up the Rosha Committee vide its decision, dated 18.10.1996, to inter-alia, identify the persons in the Department of Customs for non-verification of post-importation conditions or clearance of such goods from the ports in the absence of the said certificates without taking adequate precautions. The main work undertaken by the Committee was to go into individual cases of grant of exemption and identify the acts of commission and ommission of officers of Customs Department as also of officers of other Departments which have resulted in loss of huge amounts to the exchequer.
- In this regard, all cases relating to fixation of responsibility for loss of revenue on officers of the Department will be handled and monitored by the Director General (Vigilance). All Commissioners of Customs are, therefore, directed to send their complete investigation reports for taking suitable action to the Director General (Vigilance). The Director General (Vigilance) will prepare the progress report of the cases pertaining to fixation of responsibility. This report will be furnished to the Member (Customs) on a bi-monthly basis. The last status report reflecting the position as on 30.11.2000 has since become due.
- Upon receipt of the progress report in the Board Office, from the Director General (Inspection) and Director General (Vigilance), the status report will be filed in the High Court of Delhi by the one-man Committee comprising of member (Customs). The status report is to be filed once in two months in the form of interim reports as per the directions of the Court.
- Hearings in the High Court of Delhi in regard to the CWP No. 409/96 PUCL vs. Union of India are also held on a bi-monthly/quarterly basis. The status report has to be prepared for filing in the Court atleast one week prior to the hearing date. The one-man Committed will be required to file the 17th status report by 15/1/2001 reflecting the status as on 30.11.2000, as the next date of hearing in the Court is on 19/1/2001. The Director General should, therefore, furnish the progress reports to the Member (Customs) by 5/1/2001.
- The Director General (Inspection) should designate an officer not below the rank of the Joint Commissioner to co-ordinate with the Sr. Government Advocate, for briefing him and following the proceedings in the Court. Similarly the Director General (Vigilance) should also designate a Senior Officer to attend to the Court proceedings.
- This issues with the approval of Chairman (C.B.E.C.). Kindly acknowledge receipt of the instruction.
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(S.K. Sinha)
Director (Customs)
Issued by:
Government of India, Ministry of Finance
Department of Revenue
Central Board of Excise & Customs, New Delhi
F.No. 460/119/96-Customs (Pt.)
24.11.2000
Present : Mr. Prashant Bhushan and Mr. Sanjeev Kapoor for the petitioner. Mr. Keshav Dayal, Senior Advocate with Ms. Kailash Golani for respondent No.2 Mr. A.K. Dutt for CBI Mr. B.P. Verma, Chairman, Central Board of Excise & Customs.
CW 409/96Pursuant to earlier order, Mr. B.P. Verma, Chairman, Central Board of Excise & Customs is present in Court. He has suggested that in place of Mr. S.D. Mohile, who has continued as one man committee in terms of the order dated 18.10.1996 and has since retired, the work be entrusted to Member, Customs. It is stated that presently Mr. K.L. Verma is the Member, Customs. Accordingly, we direct that in place of Mr. Mohile, Mr. K.L. Verma will act as one man committee to monitor and advise on the issues related with the terms of reference formulated in the said order. The Board will apprise Mr. Verma of this order; have the records of the case collected from Mr. Mohile and deliver the same to Mr. Verma, who would file periodic reports of the progress made in the case. Mr. Rosha had asked for some clarification from the Board, which will be looked into and responded to by the Chairman, C.B.E.C. personally or through any senior officer to be designated by him. The Chairman has assured us that the needful will be done expeditiously.
On behalf of Director General, Health Services, a status report has been filed in Court. We have perused the same. Regarding inspection of the remaining institutions, it is stated that further inspections would be carried out depending upon the State Government's response. It needs little emphasis that work of inspection of the remaining institutions has to receive top priority and we hope that necessary steps in that behalf will be taken by the Director General, Health Services. Correspondence exchanged between the Union Health Secretary and Chief Secretaries of States shall be filed alongwith the next status report. Report filed today be kept in sealed cover.
List on 19.01.2001.
Copy of the order be given dasti to learned counsel for the parties under signature of Court Master.
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Devinder Gupta, J.
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D.K. Jain, J.
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