₹128.58 crore revenue loss due to lax Project Imports Scheme controls, CAG finds

This performance audit examined the adequacy of procedures, compliance, and internal controls for the Project Imports Scheme under the Union Government's Department of Revenue (Customs) for the period from April 2019 to March 2024.

Union Government, Department of Revenue (Indirect Taxes - Customs), specifically the Central Board of Indirect Taxes and Customs (CBIC) and its field formations.

• Revenue implication of ₹128.58 crore identified by CAG.
• Procedural irregularities involving ₹2,979.33 crore noted in the audit.
• Duty foregone on account of concessional assessment stood at ₹6,704.55 crore during the audit period.
• In 57 finalised cases, contracts were closed without mandatory Installation Certificates or Plant Site Verification.
• Cargo clearance delays ranged from 3 to 1,149 days, contrary to the scheme's objective of rapid movement.
• 139 cases involving a CIF value of ₹15,818.11 crore were not made available to the Audit.
• CAG recommended 11 actions, including prescribing specific timelines for registration and import completion, and implementing automated system checks in the ICES platform.

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