Custom arrest limit at over 20lakh `
The monetary limits for arrest and prosecution have been revised upwards to ensure these powers are not used against small and medium businesses
New Delhi: Now a person flying in from abroad can be arrested by customs for outright smuggling or misdeclaration of baggage at airports only if the value of goods is over 20 lakh. The earlier ` threshold was 5 lakh. `
Now a person flying from abroad can be arrested by customs for outright smuggling or mis- declaration of baggage at airports only if the value of goods is over ` 20 lakh against the earlier threshold of ` 5 lakh.
As per current rules, a person can pay a fine for any undeclared or misdeclared baggage of a value up to ` 5 lakh. If the value of baggage is beyond this limit, it attracts prosecution or arrest. The Centre has now raised this limit to ` 20 lakh.
However, there will be no lower limit for arrest and prosecution in the cases of smuggling of fake Indian currency notes, arms, ammunitions and explosives and endangered species.
The monetary limits for arrest and prosecution have been revised substantially upwards by the Centre on Friday to ensure that these powers are not used against small and medium businesses.
The limits, in case of offence of evasion of tax or wrongful utilisation of input tax credit in case of central excise and service tax, have been revised to ` 1 crore from ` 25 lakh and ` 10 lakh respectively. In case of evasion of tax under the customs act, the limit has been revised to ` 1 crore from ` 10 lakh in case of evasion of tax by wrongful availment of exemption or duty drawback. Similar, revisions regarding value of goods have been carriedout regarding appraisement of tax during import or export.
In case of “habitual evaders”, notwithstanding the ` 1 crore limit, prosecution can be launched in the case of a company/ assessee habitually evading tax/ duty or misusing cenvat credit facility.
The procedure to be followed for arrest and sanction of prosecution has been revised and specified with adequate safeguards to ensure that only in cases of serious nature above the revised thresholds, where there is strong prima- facie evidence, these powers are exercised, said finance ministry.
Persons involved in serious offences of tax evasion are liable for arrest and prosecution under the Central Excise Act, 1994, Finance Act, 1994 dealing with Service Tax and Customs Act, 1962. The Central Board of Excise and Customs has issued instructions from time to time prescribing the procedures, safeguards and threshold limits above which these powers are to be exercised with discretion and responsibility.