AHMEDABAD: The
directorate of revenue intelligence (DRI) on Tuesday unearthed alleged customs duty evasion of Rs 64.76 crore β involving goods worth Rs 232 crore β by a Mumbai-based jewellery house by exploiting the advance authorization scheme. The DRI has arrested the managing partner of the firm, an overseas citizen of India holding a British passport.
The advance authorization scheme is a duty exemption scheme that enables duty-free import of inputs for export production. Under the scheme, exporters can import raw material and related inputs with 100% duty exemption.
In a joint operation, the DRI units of
Vapi and Surat searched the premises of this jewellery house in Pune and Ludhiana and found that the firm was involved in evasion of customs duties by fraudulently availing of advance authorization scheme benefits. DRI officials found that the main Ludhiana-based supporting manufacturer of the company was non-existent.
βThe company evaded customs duty of Rs 64.76 crore payable on imported goods valued at Rs 231.66 crore due to diversion of 25,684.60 metric tonnes of imported raw material. The managing partner of the firm admitted that he diverted and sold the all of the duty-free imported raw materials in the open market and has not exported goods manufactured from it. He took responsibility for the evasion of customs duty,β said a DRI official.
The official added that the managing partner of the firm has defrauded the exchequer and committed an offence under the Customs Act, 1962. The company allegedly imported 25,684.60 metric tonnes of raw materials including low-density polyethylene (LDPE), linear low-density polyethylene (LLDPE), polyvinyl chloride (PVC) resins, high density polyethylene (HDPE) and copper rods between June, 2016 and January this year and started selling it in the open market.
Further investigation is under way.