Ahmedabad: DRI busts fake rebate scheme racket in three states
Parth Shastri | TNN | Mar 19, 2019, 20:03 IST
Representative imageAHMEDABAD: The Ahmedabad zonal unit of Directorate of Revenue Intelligence (DRI) busted a racket that has been misusing the Merchandise Export from India Scheme (MEIS) for claiming rebates on goods worth Rs 5,500 crore. So far, the officials have found discrepancies amounting up to Rs 52 crore.
As per investigators, a specific intelligence was developed by DRI that various exporters of insecticides were indulged in mis-classification of their export product ‘insecticides.’ By doing so, they wrongfully claimed MEIS benefit at higher rate than they were actually entitled for.
“MEIS Scheme is an export incentive scheme of the central government under which exporters get 1% to 7% of the FOB (Free on Board) value of their export product as incentive depending upon their product and Customs Tariff Heading under which the product is classifiable,” said an official.
After the information, DRI conducted searches at premises of various exporters of insecticides based in Gujarat, Maharashtra and Tamil Nadu. Concerned persons of these insecticide companies admitted in their statements that they were misclassifying their product and by doing so they were wrongfully claiming MEIS benefit at 3% of FOB value of their export product against their actual entitlement of 2% of FOB value.
“These exporters have voluntarily paid Rs 52 crore so far towards wrongful availment of excess benefit under MEIS by resorting to misclassification of their product,” said the official.
As per investigators, a specific intelligence was developed by DRI that various exporters of insecticides were indulged in mis-classification of their export product ‘insecticides.’ By doing so, they wrongfully claimed MEIS benefit at higher rate than they were actually entitled for.
“MEIS Scheme is an export incentive scheme of the central government under which exporters get 1% to 7% of the FOB (Free on Board) value of their export product as incentive depending upon their product and Customs Tariff Heading under which the product is classifiable,” said an official.
After the information, DRI conducted searches at premises of various exporters of insecticides based in Gujarat, Maharashtra and Tamil Nadu. Concerned persons of these insecticide companies admitted in their statements that they were misclassifying their product and by doing so they were wrongfully claiming MEIS benefit at 3% of FOB value of their export product against their actual entitlement of 2% of FOB value.
“These exporters have voluntarily paid Rs 52 crore so far towards wrongful availment of excess benefit under MEIS by resorting to misclassification of their product,” said the official.
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