F.NO. 521/1/2/90-CUS.TU
GOVERNMENT OF INDIA
MINISTRY OF FINANCE

Delhi, 18th Feb .94

The undersigned is directed to invite attention to Board's earlier instruction contained in F.No. 512/8/90- Cus. VI dtd.14-06-91 wherein in respect of finalisation of project contracts, among other things, it was decided that the collectorates should undertake regular plant site verification to ensure proper utilisation of goods imported for projects. The instructions were issued in pursuance of the recommendations contained in 164 in respect of the public accounts Committee (8th Lok Sabha)

The matter had been re-examined in the light of the recommendations contained in its 23rd Report (10th Lok Sabha) and it has been decided that in cases where the value of project contract exceeds Rs.1 crore the plant site  verification must be made to ensure the proper utilizesation of imported goods. In the remaining cases, such site verification must be made at least in ten per cent of the cases selected at random.