Question : EXPORT OF TOBACCO



(a) whether the Government is aware of any illegal trade in tobacco and its products;

(b) if so, the details thereof and the action taken by the Government to curtail such illegal trade;

(c) whether the Government is incurring huge loss due to such illegal trade; and

(d) if so, the details of the total loss incurred during the last three years, if any?

Answer given by the minister


THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI JYOTIRADITYA M. SCINDIA)

(a to d) Yes, Madam. The details of cases of illegal trade of tobacco products detected and losses incurred by way of duty evasion for the last three years custom formations’ and Central Excise formations’ wise are given below:-

Customs Formations
(Rs. in crore) Year No. of Cases Duty Evaded
2008-09 327 1.49 2009-10 322 1.46 2010-11 533 1.10 (upto Dec. 10)
(Source: Department of Revenue)

Central Excise Formations (Rs. in crore) Year No. of Cases Duty Evaded 2008-09 135 389.18 2009-10 101 127.06 2010-11 70 115.27 (upto Dec. 10)

(Source: Department of Revenue)

All Customs field formations including Directorate of Revenue Intelligence have been sensitized to be alert and keep constant vigil to thwart any attempt at illegal trade in tobacco. Similarly, the Central Excise field formations including Directorate General of Central Excise Intelligence have also been sensitized to be alert and keep vigil on the units manufacturing tobacco products prone to evasion of Central Excise duty and collect Intelligence/information and book cases of duty evasion against such units where required. The Government has taken appropriate action to demand duty and impose fine and penalty on errant traders.