Surat: The officers of Directorate of Revenue Intelligence (DRI) Surat and Vapi units have busted a large scale advance authorization scheme fraud by involving goods of over Rs 231.66 crores and custom duty evasion of Rs 64.76 and arrested the managing partner of a Mumbai based jeweler’s firm who was an overseas citizen of India holding British Passport.

A DRI official today said that action on a tip off the DRI teams searched the premises of a Mumbai based jeweler’s firm located on the Hughes Road, Mumbai, residential premises of its partner at Cumball Hill, Mumbai and supporting manufacturers premises located in Ludhiana and Pune. During the search operation it was found that the said firm is indulged in evasion of the Customs duties by way of fraudulent availment of DEEC/ Advance Authorisation Scheme.

‘The main Ludhiana based supporting manufacturer also found to be non-existent. Under the Advance Authorisation scheme (Duty Exemption Scheme), the company was intended to import duty free raw materials and bring it to their factory/supporting manufacturer’s premises for further manufacturing and subsequently to export the finished goods. But the said firm imported around 25684.60 Metric Tons of raw materials LDPE/LLDPE/PVC Resins/HDPE and Copper Rods during the period from June-2016 to Jan-2018 and diverted the same in open market without bringing it in their factory/registered/supporting manufacturers premises, in contravention of the provisions of the Customs Act, 1962 and grossly mis-used the Advance Authorisation scheme. In such a way, the company has evaded the Customs Duties payment to the tune of Rs. 64.76 Crores (Approx.) on the duty free imported goods valued at Rs. 231.66 Crores (Approx.) leviable on diversion of around 25684.60 Metrics Tons (MTs) of imported raw materials,’ he added.

The Managing Partner of the said firm in his statement has also admitted that he has diverted and sold the entire qty of duty free imported LDPE/LLDPE/HDPE/PVC Resins/Copper Rods in open market and have not done any export of the goods manufactured out of these materials and took the responsibility for evasion of Customs duty. The Managing Partner, (Overseas Citizen of India holding British Citizenship) of the said firm, by this act, has defrauded the Government Exchequer and have committed an offence of the nature described under the Customs Act, 1962. The DRI Vapi unit has arrested the Managing Partner of the said firm for his act of omission and commission and he has been remanded to judicial custody of two weeks. Further investigation of the case is in progress, he said.

DeshGujarat