PROSECUTION AND CRIMINAL JUSTICE RESPONSE IN CUSTOMS AND CENTRAL EXCISE – A STUDY
By Dr. G. Gokul Kishore & Mr. T.M. Kothandaraman
Crime-prevention through punitive action is sine qua non for the existence and sustenance of society and the human civilisation. In any society, more so in the modern era, the consequences of criminal acts determine the magnitude of correctional actions. With Politics leaving the centre-stage in Inter-national relations and economics occupying its place, economic crimes assume more significance as the latter increases in geometric proportion compared to the development of a monetised and complicated economic structures both in the canvass of nation-states and in the international horizon. The damage that is inflicted by economic crimes to a national economy and hence the society mandates the need to prevent them. The trial and punishment of such offences by the judicial system secures two ends i.e. the offender is reformed (reformative end) and the potential offenders are deterred from indulging in such activities (deterrence effect). Thus prosecution of an economic offender serves at both the individual and social levels.
Indirect taxes contribute the maximum ( 50 % of Gross Tax Receipts of Govt. of India during 1997-2001)(CMIE 2002) among all other tax revenues to the Central Exchequer and every leakage in such revenue has far-reaching implications. K.D.Gaur ( 1987) identifies, inter alia, (i) inadequate prosecution machinery (ii) lack of adequate legal advice on potential prosecution cases (iii) lenient judicial attitude towards tax evasion as causes of tax evasion. The Indirect tax laws, viz., the Customs Act, 1962 and the Central Excise Act, 1944 provide for prosecution and punishment by the Judiciary in addition to the financial penalties imposed by the department. With the advent of New Economic Policy in 1991, the overall climate in so far economic offences are concerned, has become more of ‘fine-only’ offences with the criminal intent/effect receding to the back-stage. The role of the Criminal Justice System has been under greater strain in such a scenario. This Paper, therefore, attempts to study the present-day statutory provisions pertaining to prosecution in respect of evasion of Customs and Union Excise duties as provided in the relevant statutes, the performance of the Indirect Tax Administration in bringing tax offenders to book and the Criminal Justice Response in this sphere. An evaluation of the prosecution performance is also made along with a discussion of relevant recommendations of various committees constituted by the Government of India. The extent of implementation of various reforms and consequential results in tackling such crimes also form part of the discussion.
Showing posts with label This is only an introduction - For full paper contact authors. Show all posts
Showing posts with label This is only an introduction - For full paper contact authors. Show all posts
Saturday, December 29, 2007
Paper presented in All India Criminology Conference
Tax Crimes in India - A study of Union Excise Duty evasion
By Dr Kishore and Sri Kothandaraman
Introduction:
Taxes are 'imposed' and this nature of tax substantiates the fact that Economics is not divorced from Physics in that tax evasion exemplifies Newton's Third Law of Motion. It is common knowledge that the tendency to evade a tax is as old as the tax itself. The nature, characteristics and consequences of such evasionary acts in monetised economy vastly differ, from a largely individual-oriented barter economy of the earlier era. The modern day evasion represents a direct, deliberate and informed attack of an individual or group on the State or the society at large. Tax crimes are part of economic crimes and are violations of fiscal laws of the land in the course of occupational activity by persons who are respectable and of high status in the eyes of the society. Edwin Sutherland, a noted Criminologist described these as "crimes committed by a person of respectability and high social status in the course of occupation. First proposed by Edelbery (1970) and later figuring in a legislation in USA, 'economic crimes' is defined as 'an illegal act or a series of illegal acts committed by non-physical means and by concealment or guile, to obtain money or property, and avoid the payment of loss of money or property, or to obtain business or personal advantages.'
By Dr Kishore and Sri Kothandaraman
Introduction:
Taxes are 'imposed' and this nature of tax substantiates the fact that Economics is not divorced from Physics in that tax evasion exemplifies Newton's Third Law of Motion. It is common knowledge that the tendency to evade a tax is as old as the tax itself. The nature, characteristics and consequences of such evasionary acts in monetised economy vastly differ, from a largely individual-oriented barter economy of the earlier era. The modern day evasion represents a direct, deliberate and informed attack of an individual or group on the State or the society at large. Tax crimes are part of economic crimes and are violations of fiscal laws of the land in the course of occupational activity by persons who are respectable and of high status in the eyes of the society. Edwin Sutherland, a noted Criminologist described these as "crimes committed by a person of respectability and high social status in the course of occupation. First proposed by Edelbery (1970) and later figuring in a legislation in USA, 'economic crimes' is defined as 'an illegal act or a series of illegal acts committed by non-physical means and by concealment or guile, to obtain money or property, and avoid the payment of loss of money or property, or to obtain business or personal advantages.'
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