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Customs, excise depts recast plan okayed

Our Bureau

NEW DELHI, July 10

THE Cabinet today approved a restructuring package for the Customs and Central Excise department, expected to result in an additional revenue mobilisation of five per cent.

The exercise is aimed at enhancing the productivity and effectiveness of this department. A similar proposal is already under implementation with the Cabinet having approved it for the Central Board of Direct Taxes last year.

``The restructuring of the Customs and Central Excise department involves reduction in the span of control of zones, commissionerates and divisions. It will also involve net reduction in the staff strength by 3,600 i.e, 5.24 per cent of the existing stre ngth of 68,761,'' the Minister for Parliamentary Affairs, Mr Pramod Mahajan, told presspersons here.

He also said the number of Central Excise Commissionerates are to be increased from the existing 59 to 92. Also, the number of Excise Divisions are to be increased from 330 to 460. The restructuring package also involves an increase in the number of Cust oms Commissionerates from 25 to 35.

Mr Mahajan said it is also proposed to provide for 54 additional posts of Commissioner (Appeals) to deal with nearly 38,000 pending cases.

He said the department is being restructured to meet the work requirements of the increased indirect tax collections.

The Minister pointed out that the total indirect tax collection in 2000-01 was Rs 1,15,000 crore as against a collection level of Rs 40,397 crore in 1989-90.

Over the last five years there has been an annual growth of 10 per cent in Central Excise and 13 per cent in Customs Duty collection.