PRESS RELEASE - Misuse of duty free credit entitlement certificate scheme by M/s. V.K.Udyog Ltd
April, 07th 2011
GOVERNMENT OF INDIA DIRECTORATE OF REVENUE INTELLIGENCE KOLKATA ZONAL UNIT 8, Ho Chi-Minh Sarani, Kolkata- 700071 Telephone:- (033)-2282 3321, Fax:- (033)-2282 4465 ______________________________________
MISUSE OF DUTY FREE CREDIT ENTITLEMENT CERTIFICATE SCHEME BY M/S. V.K.UDYOG LTD.
Intelligence suggested that M/s. V.K.Udyog Ltd. has imported LDPE/HDPE granules and PP granules without payment of duty under Duty Free Credit Entitlement Certificate and availing exemption under Notification No. 53/2003-Cus dated 01.04.2003 during 2009-10 and 2010-11 and sold these materials in the market. As per the condition of the aforesaid notification the imported goods cannot be sold or transferred. Consequently, searches were undertaken on 22.03.2011 in the offices of the above firm and certain incriminating documents were seized. On preliminary investigation, it was revealed that the actual importers are (1) M/s R.S.Vanijya Pvt. Ltd. (2) M/s. Roto Global Pvt. Ltd. (3) M/s. Exotica Global Pvt. Ltd. (4) M/s P.P.Products Pvt. Ltd. (5) M/s. Creative Ploypacks and (6) M/s Accenture Niryaat Pvt. Ltd and to effect those imports without payment of duty, they got the bills of entry filed by M/s V.K.Udyog Ltd.(certificate holder) under duty free Scheme showing transfer/sale of those import consignments on high sea sale basis to the said firm M/s. V.K.Udyog Ltd. The duty foregone on account of duty free import is about Rs. 2.79 crore (approx). The importer has admitted the aforesaid fact of duty foregone and deposited duty amount of Rs. 1.40 crore. Further investigation is in progress.
Sd/ (05.04.2011) (VASA SESHAGIRI RAO, IRS) ADDITIONAL DIRECTOR GENERAL