TMI BlogExpeditious disposal of seized/confiscated goodsX X X X Extracts X X X X X X X X Extracts X X X X ..... so expressed concern over the pace of disposal of goods that have become ripe for disposal and wants efforts to be stepped up to expedite their disposal. A copy of the note recorded by him and of the note on the discussion subsequently held with Secretary (Revenue) is enclosed. 3. The collectors are, therefore, directed to organize a Special drive for disposal of confiscated goods which have become ripe for disposal. 4. Special efforts should also be made by examining each file to ensure that seized/confiscated goods become ripe for disposal. The main reason why seized/confiscated goods are not disposed of is that departmental or court proceedings are pending or Section 110 (1A) of the Customs Act is not invoked. Minister of State (Reve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... we auction the goods. At that stage, the importers come rusting to pay the duty and interest. The reason why the importers are interested in not clearing the goods from godown is that they get cheap godown facility in the bonded warehouses and also that the interest rate which is 12% is much lower than the current market rate of 18%. The Importers also know that auctions are not very effective and their goods which often are specifically needed for one factory or industry only are not sold to or brought by other people. (v) In order therefore, to improve the collection or revenue from the above source, it is also necessary to take recourse to some coercive method which is available under Section 142 of the Customs Act. (vi) Under this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bonding of goods are to be allowed to an importer who has already stocks of such uncleared goods in the warehouses. (g) Proper and regular supervision must be done at Collector's level and a monthly improvement report should be sent to Board. II. Sale of confiscated goods (i) Confiscated goods are of two types. The first type is those lying in warehouses under the Custom houses. The goods are baggage items and secondly, the seized goods in course of raids by preventive parties. (ii) A proper account of all these goods and the duty involved is already available. This will show a large amount of goods which are lying for disposal. (iii) Some are not ripe for disposal and some are ripe for disposal. It is necessary to examine both ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court cases Estimate shows nearly 2000 crores of rupees have been blocked in court injunctions. The litigations are conducted by Law Ministry. It is common knowledge that payment by Law Ministry is very slow. There is no freedom of choice of lawyers by us. Whereas the responsibility to raise revenue is with us, the power to fight law cases is with the Law Ministry. This duality has led to this blockade of revenue at such a large scale. The Collectors must be given power to appoint lawyers and pay them. Then the number of injunctions also will come down and the blockade of revenue will also come down. If we are to fight the importers also such injunctions only to stall the payment of revenue, we need the freedom to appoint lawyers and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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