CVC probing irregularities in Kakinada Port work

KAKINADA: Several irregularities and infractions are coming to light at Kakinada Port lately. The Central Vigilance Commission officials are probing some of the alleged malpractices in the port. According to sources, a leading shipping company had claimed a service tax waiver to the extent of Rs 7.5 crore for the installation of infrastructure facilities in the port in the year 2013, claiming that it was a service provider to the port. However, the Kakinada Deep Water Port officials told officials that the company can’t be categorised as a service provider, but only an agent. An agent is not entitled to service tax exemption, according to the rules. However, some of the port officials have certified that the company is in fact a service provider. The matter is now being investigated.

Experts said that neither the service provider nor the agent is entitled to claim waiver of service tax and the leaseholder is eligible for the claim for installation of infrastructure facilities in Kakinada Port. Meanwhile, the Port officials have also issued a certificate to the shipping company as a service provider to the port, based on the submission of  papers by the company.

Meanwhile, the company has also stated in their documents that it was paying handling charges at the rate of Rs 160-Rs 250 and Rs 400-Rs 450 per tonne for fertiliser and coal cargo to the deep water port. But it is learnt that the D.W officials told the State Ports that they were collecting handling charges @ Rs 20 per tonne and accordingly they calculated the share of the government in the revenue as 22 per cent.

Therefore, if the company’s statement was true, the D.W. officials had underpaid the state government’s share in the revenue. Now It has to pay the state government’s  remaining share with a fine, said an official of the port. Meanwhile, the State Port officials issued showcause notices to all companies and officials involved.