Pay up Customs Duty before Selling Aerostat, OC told.

The Rs 38-crore aerostat, the showpiece of the opening and closing ceremonies of the Commonwealth Games, has landed the Organising Committee (OC) in a spot of bother once again. Even as the OC plans to put out a tender for inviting sale bids for the gigantic helium balloon, they have received a missive from the Commissioner of Customs stating that such a move would be a violation of its import conditions and they would have to pay up the waived customs duty.

The Commissioner of Customs stated, “It has come to the notice of the Department that the OC is contemplating selling or auctioning the aerostat... however, there was an undertaking that all such goods shall be consumed or re-exported within three months from the conclusion of the Games or shall be handed over to the Sports Authority of India or the Government of the National Capital Territory of Delhi.” The letter, received by the OC on October 22, does not mention a figure, but officials estimate that the duty on the aerostat could be around Rs 10 crore.

The department has also reminded the OC that the licence procured by them from the Directorate General of Foreign Trade imposed the condition that “the proposed balloon shall be confined to the indoor stadium only”. The OC has now been asked to “fulfil the condition of the notification and also the conditions imposed under the import licence” and reminded that any violations may invite penal provisions of, besides the Customs Act, relevant provisions of the EXIM policy and the Foreign Trade Development and Regulation Act.

Source : indianexpress.com