CBIC Issues Guidelines for Customs on Maintaining Ease of Doing Business in Tax Evasion Investigations

The Central Board of Indirect Taxes and Customs (CBIC), through Instruction No. 27/2024-Customs, has set out guidelines to streamline Customs field investigations into tax evasion cases related to imports and exports, focusing on maintaining a balance with the ease of doing business.

Key points include:

1. Approval & Timely Completion: Investigations require prior approval by the Commissioner and should conclude within a year to minimize business disruptions.
2. Comprehensive Pre-Investigation Analysis: Intelligence and relevant aspects must be cross-checked against data, legal precedents, industry practices, and existing open-source information to limit interaction with businesses.
3. Enhanced Communication Practices: Officials are encouraged to request documents in writing. Issuing summons should be done with prior approval, and specific inquiries must avoid vague language.
4. Reasonable Summons & Information Requests: CBIC emphasizes seeking only essential documents and allows representation by an authorized agent. Summons must not demand irrelevant materials outside the investigation’s scope.
5. Clear Conclusion & Closure: Investigations should close promptly upon completion, with a self-explanatory report detailing the issue and payment status, if applicable.
6. Responsive Grievance Resolution: The Commissioner may directly address any persistent grievances of the importer/exporter.

These guidelines ensure a business-friendly approach while facilitating compliance and preventing tax evasion effectively.

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