The Central Board of Indirect Taxes and Customs (CBIC) has released Instruction No. 27/2024-Customs, dated November 1, 2024, to guide Customs field formations on handling tax evasion investigations while promoting ease of doing business. This directive aims to strike a balance between rigorous enforcement of customs regulations and minimizing disruptions to legitimate trade activities in both import and export sectors.
Under the new guidelines, Customs officers are instructed to adopt a more streamlined and transparent approach in their investigative processes, particularly in cases of suspected tax evasion. This includes implementing time-bound procedures, clear documentation requirements, and regular updates to ensure timely resolution of investigations. Additionally, the guidelines stress the need to avoid unnecessary detainment of goods and prolonged procedures that could adversely affect compliant businesses.
The undersigned is directed to say that Customs field formations/Custom Houses often investigate types of cases of tax evasion in import or export of goods which are generally referred as commercial intelligence/fraud (CI) cases. These types of cases are distinct from the category generally referred as outright smuggling cases that, inter alia, involve contraband etc. Since import and export of goods through the filing of documentary declarations is also connected with doing business, the approach in investigation of Cl cases must keep the balance with ease of doing business.
Keeping relevant aspects in view, the Board desires the following guidelines be followed by Customs field formations/Custom Houses while engaging in investigation in Cl matters, subject to legal provisions or instructions otherwise issued in this behalf:
Within the jurisdiction of the Commissionerate, the Commissione (1) is responsible for developing and approving any intelligence, investigation and its completion. Each investigation must be initiated only after the approval of the Commissioner. A CI case investigation must reach the earliest conclusion which is normally not more than one year.
Before initiating investigation, the intelligence inputs and relevant aspects related to Cl matters need to be appropriately analyzed. This includes cross check with reference to available data, technical literature, prevalent industry practice, judicial pronouncements, extant legal framework, precedence etc. It is desirable to undertake as complete an analysis as feasible, before the actual investigation is initiated. This would also enable seeking holistic information/record/documents related to an issue in the first instance, which is an important factor in minimizing interface with the importer/exporter.
