Rs 300 crore EXCISE REBATE SCAM UNEARTHED IN SURAT BUT CBEC TOPBRASS YET TO ACT AGAINST CONNIVING OFFICIALS!
By TIOL News Service
SURAT, NOV 18 : EVERY revenue scam exposes the inadequacy in the existing monitoring mechanism. And this is what can be abundantly seen in the recently-detected excise rebate scam of more than Rs 300 crore! What makes it more glaring and smells of deep-rooted connivance of not only junior but even some of senior revenue officials is its genesis in the year 2002-03 and the improvised modus operani.
Taking undue advantage of non-computerised CFS Mulund (TIOL had earlier predicted its scam potential in a series of articles), a large number of exporters forged the genuine shipping bills by simply putting their names and allowing other details to remain the same and went on availing excise rebate for exports of man made fabrics.
Though about 10 of such exporters have been arrested by the Preventive so far but the fact remains that these exporters had obtained IEC from jurisdictional DGFT office by furnishing fake addresses and continued to claim rebate by churing out bogus documents having signature of customs officers.
It is learnt that with the help of Nhava Sheva, Mumbai Custom House and CFS Mulund Customs officials these fraudsters continued to outshine notorious Taufiq of EoU scam. And, with the help of shroffs they continued to encash their cheques at discounted rates. Sources
In Surat I Commissionerate alone, the total such rebate sanctioned is in the range of Rs 96 crore last year and more than Rs 86 crore this year so far. The fraud came to be detected when it was seen that the revenue realised from man made fabrics was much lower than the rebate sanctioned. This indeed alarmed several senior revenue officials and then a probe began.
Though the actual dimension of the fraud is yet to quantified by a rough estimate pegs it at more than Rs 300 crore, including Surat II and other neighbouring commissionerates. And what indicates excise officials' connivance is the blatantly fake documents and shipping bills which also indicate the period of exports after the rebate was claimed but none in the department looked into it.
It is learnt that the Directorate of Vigilance is seized of the matter and the Board may take some harsh decisions soon. Though the scam was detected five months and the on-going investigation has unearthed shocking dimension of the scam what is CBEC topbrass waiting for before ordering suspension of some of the obvious conniving ones is not known. But the Finance Minister, who believes that the revenue saved from scam is revenue earned, may take a decision soon.
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