Audit Observation

Annexure

Audit Observation

(Chapter 7 of Report No.5 of 2004. Scientific Departments)

Avoidable payment of Customs duty: In terms of the Customs Tariff Act, the import of electronic integrated circuits and micro assemblies was exempt from Customs duty. It was, however, noticed that three units of the Department of Space located in Bangalore and Ahmedabad wrongly interpreted a notification issued by Government of India and paid Customs duty of Rs.86.36 lakh during 2002-03 on the import of integrated circuits.