(Bond)ed corruption in the Central Excise department
Laws formulated by the Excise department to relax excise duty or tax levied on export/import businesses are flouted almost on a regular basis by the Central Excise department. Individuals involved in this business are taken for ride by the CE officials by refusing to issue excise bonds, unless they cross their palms with silver.
An excise bond is a document that enables regular overseas trade without having to pay taxes each time consignments are sent or brought from abroad. Bonds are bought at a certain price stipulated by the respective state government. What actually happens is that the CE department fleeces individuals by demanding under-the-table payments to issue the excise bonds. Helpless traders are left with no option but to pay up the bribe, to escape delay in exports. A complainant from Indore explains how they are forced pay bribes regularly since they are afraid that the bonds will expire and once that happens, procuring new bonds will lead to another headache.
A respondent from Bangalore reports how he reportedly paid a bribe of Rs.1250 to avoid a delay that would lead to loss of Rs.70,000 in freight charges. The superintendent incharge did a speedy job by issuing the bond within two hours of paying the bribe.
Several times, businessmen are held at ransom as they have no choice but to comply with the CE officials to avoid incurring huge losses.
By Juwairia Mehkri