TMI BlogDelay in disposal of seized/confiscated vehicles - DAP No.59 proposed for inclusion in the C&AG’s Report on Indirect Taxes (Customs) for 2004-05 – regX X X X Extracts X X X X X X X X Extracts X X X X ..... t on Indirect Taxes (Customs) for 2004-05 - reg An instance has recently been brought to the notice of the Board where due to inordinate delay in the disposal of a Mercedez Benz car seized in November 1986 and absolutely confiscated in November 1987, the car could be disposed of only in December 2003, resulting in significant loss of revenue. The existing instructions on the subject have not been complied with, hence the loss of revenue. In order to prevent the recurrence of such an incident, you are directed to take immediate stock of seized/confiscated vehicles in your jurisdiction and to ensure that action is taken to dispose of vehicles in terms of existing instructions. For ease of reference, the provisions contained in various ins ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecking the engine etc., and iv) the services of a mechanic may be requisitioned to keep the vehicle in good order, but this is to be resorted to only in cases of absolute necessity and with the permission of an officer not below the rank of Assistant Commissioner. 3. In view of the fact that there is considerable deterioration of the vehicle as well as expenditure on garaging and maintenance if the vehicle is not quickly disposed of, it is directed by the Board that i) Every attempt should be made to finalize the adjudication proceedings for motor vehicles and vessels within one month; ii) Where the Adjudication order mentions fine in lieu of confiscation or reshipment, the period allowed should be only up to thirty days. If the pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Customs law for putting these vehicles to use for official purposes. Moreover, the question of the liability of the Government to pay compensation to the owners for depreciation, damage etc may also arise. 6. Confiscated vehicles should not be sold in auction unless the possibility of using them for Departmental use has been fully explored. These vehicles should, however, be used only after taking prior approval of the Board. At the time of making such a proposal, the following particulars of the vehicles should be provided: 1. Date of seizure 2. Date of the order under which it was confiscated and duty/fine/penalty imposed and realized 3. Name of the owner of the vehicle 4. Make/model of the car, its engine horsepower and seati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing disposed of for a long time pending completion of adjudication proceedings/court cases etc. leading to deterioration. Continued storage of such conveyances may also result in considerable expenditure on garaging facilities and maintenance charges. Accordingly, it must be ensured that prompt action is taken in terms of Sec. 110(1B) of the Customs Act 1962 to dispose of all seized vehicles. Any difficulties faced by the field formations in effecting expeditious disposal of seized/confiscated vehicles may be immediately brought to the notice of the Board. F.NO.715/7/2005 -CUS(AS) Yours faithfully, Priya V.K. Singh Deputy Secretary Tel 26177519 Copy to: 1. PS to Chairman (E C)/PS to All Members of CBEC. 2. Commissioner, Dir ..... X X X X Extracts X X X X X X X X Extracts X X X X
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