FinMin pulled up for intervening in a customs matter

NEW DELHI: A "draft" report of the Public Accounts Committee is understood to have pulled up the Finance Ministry for "wrongly" intervening in a customs matter leading to undervaluing of duty in a case involving the son of a journalist who had written a book on Defence Minister George Fernandes giving him a clean chit in the Tehelka expose.
The draft report on "Short Levy on Customs Duty Due to Incorrect Classification of Goods--Bedding, Mattresses etc" mentions that an import by the firm belonging to V.R. Pandit, the son of R.V. Pandit, who had written the book, was classified in a particular category that had resulted in undervaluation of Rs 11.4 crore, to his advantage.
The report stirred a controversy with the ruling benches stalling its tabling in the Lok Sabha yesterday drawing strong criticism from the opposition members. While the PAC Chairman Buta Singh had contended the report was "unanimous", BJP members said seven of their colleagues had opposed it. The Speaker said the new House would decide on the tabling of the report.
The report is understood to have said that the Finance Ministry "wrongly" intervened in the matter to the advantage of the assessee (Vasant (RPT) Vasant Raj Pandit) in issuing the circular redetermining the classification of the goods which earlier had been allowed under another head to the financial disadvantage of Pandit.