The Central Board of Excise and Customs (CBEC) is expected to take a decision on the conduct of the central excise department on the basis of a high-level report following a complaint by Tata Iron & Steel Company (Tisco).
The inquiry by R K Gupta, director-general (audit and inspection), was ordered by the CBEC after Tisco executives met the revenue secretary and board members to apprise them about alleged harassment by the department. The report was submitted to the CBEC last week.
The central excise department had recently issued notices to Tisco's board of directors, charging the company of evading Rs 45 crore of excise duty. The notice, pertaining to 1992-97, was issued by P N Sarangi, central excise commissioner (Jamshedpur).
Revenue department officials said the probe found the department's action excessive and unwarranted. It is also believed to have pulled up the department for ill-treating a friendly assessee like Tisco.
Sources said the charge of excise duty evasion against Tisco was unjustified and was made on the basis of faulty auditing by the department.
A Tisco executive confirmed that the company had complained of harassment. "We have taken up the matter with the higher authorities in the finance ministry. We certainly expect that they play fair with us and we get justice," he said.
The case has assumed a new dimension with the Tatas also alleging excessive red tape in the airline proposal. They have withdrawn their proposal to set up the airline.
Tisco's annual report for 1997-98 mentions that with regard to wealth tax, income tax, customs and excise duty, there were no amounts outstanding as on March 31, 1998, which have remained unpaid for more than six months from the date on which they became payable.
With regard to sales tax collected or deemed to be collected, the report states that there were no outstandings as on March 31, 1998, for a period of more than six months from the date on which they became payable, except for collections which are refundable to customers because they have been made in excess or which have been made pending receipt of the relevant certificates from the customers.
