The Hindu : Front Page : Vigilance wing inspects 4 checkposts

Online edition of India's National Newspaper
Wednesday, Aug 30, 2006

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Vigilance wing inspects 4 checkposts

Staff Reporter

Action to be recommended against officials responsible for lapses

THIRUVANANTHAPURAM: At least two instances of large-scale tax evasion came to light when the Vigilance and Anti-Corruption Bureau (VACB) on Tuesday re-examined cargo vehicles cleared by sales tax officials at four select border checkposts in Kerala.

At the Amaravila checkpost, the VACB found that sales tax officials had cleared a cargo lorry carrying plastic commodities without properly assessing the value of the goods. The loss to the Government was estimated at nearly Rs.2 lakh.

A similar tax evasion of Rs.1.85 lakh was detected at the Manjeswaram border post when VACB officials inspected a vehicle carrying textile materials that had been cleared by the sales tax officials there. Official sources said action would be recommended against the officials responsible for the lapses.

The VACB inspected nearly 200 cargo vehicles cleared by sales tax officials at Amarvila, Walayar, Aryankavu and Manjeswaram checkposts as part of "Operation Maveli." The surprise inspection was aimed at increasing Government revenue by cracking down on the evasion of tax on goods imported into Kerala.

It was also seen that the Value Added Tax rate for rice, which is comparatively less, had been applied for consignments of pulses that attracts a higher tax rate. Importers often wrongly declared the quantity and nature of goods at checkposts in order to get a lower entry tax rate. The electronic weighbridges, used for checking the laden weight of cargo lorries, were not in working order at some checkposts.

Home Minister Kodiyeri Balakrishnan ordered the operation at the behest of Finance Minister T.M. Thomas Isaac. Additional Director General of Police (VACB) Siby Mathews and Sales Tax Commissioner Paul Antony headed it.

In 2003, the VACB had raided checkposts and exposed large-scale corruption among sales tax officials. Large amounts of unaccounted money were seized from the custody of several checkpost officials. Following the VACB raid, the Sales Tax Department instructed all checkpost officials to declare the money in their possession before entering office.

The intelligence wing of the VACB has now learned that certain corrupt officials declare a high amount of personal cash, often up to Rs.3000, before entering office as a defence against a possible anti-corruption check.

Meanwhile, the Finance Department has prepared a detailed plan to modernise important checkposts in Kerala. Separate bays have been proposed for inspecting cargo lorries.

The latest scanning equipment would be installed at the checkposts to reduce the time required for clearing a vehicle.

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