Thiruvananthapuram: The Vigilance and Anti-Corruption Bureau (VACB) has recommended departmental action against 10 Sales Tax check-post officials on the charge of abetting smuggling, mainly by allowing goods vehicles without proper records to enter Kerala.

The method of large-scale tax evasion came to light when the VACB re-examined 350 cargo vehicles cleared by Sales Tax officials at the border check-posts at Amaravila, Aryankavu, Walayar and Manjeswaram on August 28. The surprise check, code-named `Operation Maveli,' was aimed at exposing the nexus between tax evaders, corrupt check-post officials and their middlemen.

The loss to the Government due to smuggling on that day alone was estimated to be more than Rs. 4.5 lakh. This was apart from the public revenue lost owing to incorrect tax assessment by check-post officials and inaccurate declaration of the nature and quantity of goods by importers.

The VACB found that check-post officials often applied the Value Added Tax rate for perishable commodities, which is minimal, for consignments of plastic goods, rice, cereals and pulses that draw a higher tax rate. Smugglers often evaded tax by concealing merchandise attracting a high tax rate under vegetable or cereal consignments. Tax was also evaded by under declaring the laden weight of the consignment. The VACB found that middlemen had sabotaged the electronic weighbridges at the four check-posts to pre-empt accurate assessment of the quantity of the imported goods.

The VACB has recommended to the Government that a different agency be allowed to reinstall and operate the weighbridges on a build-operate-transfer basis. It has also recommended the installation of electronic equipment for scanning the merchandise in cargo lorries. It has stressed the need to scientifically redesign the check-posts for avoiding inspection delays and long queues of cargo vehicles.

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