Customs secures bonds worth Rs 1,000 cr in aircraft duty case

NEW DELHI: In one of the biggest crackdown on duty evasion in aircraft purchases, the customs department has collected nearly Rs 1000 crore in bonds from India Inc and individuals who shopped for planes for charter purposes and used them for personal needs.

Since early July, the customs department had started seizing aircraft imported under "Non-Schedule Operator Permit' but were being used for personal purposes.

"In all, nine aircraft and four helicopters were seized. Six aircraft and two helicopters have been released provisionally on execution of Bonds, totally valued at Rs 863 crore and Bank Guarantee valued at Rs 196 crore," a spokesperson of the Central Board of Excise and Customs said.

Explaining that the bonds cannot be regarded as revenue accrued to the government, the official said, "Bond is an undertaking given by a taxpayer that in case of any duty liability, in that event, the same will be paid by him. Bank guarantee is merely for security for the same purpose."

Earlier, tightening the noose, the government had seized aircraft of leading corporate houses like Reliance Industries, Anil Dhirubhai Ambani Group, GMR, Oberoi and IndiaBulls among others, bringing under scanner over 250 such planes acquired since 2007 to detect duty evasion.

Anybody found guilty of acquiring aircraft with duty exemption under NSOP Scheme is liable to pay a penalty of up to five times the duty evasion, a Finance Ministry official said.

Customs official said some business houses had taken 'advantage' of the duty exemption announced last year on import of aircraft meant for chartered flights. But it has been found that many of these were later being used for personal purposes.

The aircraft imported for private purposes attract 28 per cent duty as against zero duty for scheduled and non- scheduled operators.

According to sources in the department, many are now eager to pay up to save their aircraft from being seized by the Air Intelligence wing of the Customs Department.

ADA group firm Reliance Transport and Travels, whose Global 5000 Bombarider plane was seized last month, had said it offered a voluntary bank guarantee and indemnity bond, a move spurned by the Customs on the ground that without issuance of seizure notice no such offer can be accepted.