The tax authorities have partnered with a monitoring committee that’s tasked with the sale of illegal iron ore seized in Karnataka to check indirect tax compliance in transaction of the commodity. The Central Board of Indirect Taxes and Customs plans to verify whether the export, purchase or sale of illegally mined minerals evaded payment of central excise, customs duty and service tax in the pre-GST regime, a senior government official told BloombergQuint on the condition of anonymity. The action relates to a case filed in the Supreme Court in 2009 to curb illegal iron ore mining in Karnataka.
The central government isn’t a party to the case but is examining the matter since it involves revenue related to the Goods and Services Act, the official said as he isn’t authorised to speak to the media. The tax department is also considering to become a party to the ongoing case in the Supreme Court, the official said. After a writ petition was filed in the apex court in 2009 seeking ban on illegal mining of iron ore, the court referred the matter to Central Empowered Committee to redress grievances over steps taken by the government. The CEC recommended forming a monitoring committee to supervise the sale of illegally extracted iron ore that was seized during 2006-10—which totalled nearly 29 million metric tonnes.
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