Govt proposes changes in Customs Act

The government today approved amendments to the Customs Act which will validate show cause notices issued by officials in cases of duty evasion running into thousands of crores.

"Tax evaders will not get benefited at the expense of exchequer on a mere technical ground... This would provide certainty in revenue matters by settling pending procedures before various judicial and quasi judicial authorities," Information & Broadcasting Minister Ambika Soni told reporters after a Cabinet meeting.

The Legislative Amendment Bill to amend Section 28 of the Customs Act 1962 will be introduced in the ensuing monsoon session of Parliament, she said.

The Amendment would retrospectively recognise specified Customs officers as "proper officers" for assessment of Customs duty thereby validating large number of Show cause Notices that are otherwise rendered invalid as a consequence of a judgement of the Supreme Court in February.

The SC decision invalidated a large number of show cause notices involving significant revenue thereby warranting remedial measures, the Minister said.

The show cause notices were issued by officers of Directorate General of Revenue Intelligence (DRI)and Commissionarates of Customs and others. Officers of DRI alone have issued show cause notices involving Customs Duty to the tune of over Rs 7,500 crore.

The Amendments to the Customs Act 1962 would validate show cause notices which were rendered invalid by the Supreme Court on technical grounds in February.