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Nov 18, 2010
Jailed for illegal GST refunds
By Khushwant Singh
ALTHOUGH he was required to check the items tourists bought here before endorsing their applications for goods and services tax (GST) refunds, Murgeiyah Subramaniam failed to do so with two foreigners from July 2008 to March last year. The 34-year-old customs officer processed their refund applications by accepting receipts from jewellery shops instead of checking the jewellery that was purchased.
On Thursday, Murgeiyah was jailed for a year and four months. The Malaysian and a permanent resident here was also ordered to pay a penalty of $21,600, which was the amount of bribes he had received. A district court heard that the customs officer got to know Indian nationals Kannusamy Saravanan and Subramanian Jeyapandiyan, while on duty at the airport in early July 2008.
Murgeiyah realised that the jewellery listed in the GST refund form submitted by the two men did not tally with the items and receipts produced but told the two not to worry, but in return they had to take care of him. When Subramanian returned later that month and met Murgeiyah near Tekka Market, he revealed that he was able to buy receipts for gold jewellery from Indian nationals who do not qualify for the GST rebates.
These rebates are strictly for tourists and not those on employment passes. Although the accomplices were carrying no jewellery, Murgeiyah allowed their applications for refunds of the seven per cent GST on 13 occasions for a share of the illegal proceeds. Kannusamy and Subramianiam have not been dealt with.
