DRI unearths Rs 35-cr duty evasion by ER, Metro

PATNA: The Patna unit of Directorate of Revenue Intelligence (DRI) has unearthed customs duty evasion of over Rs 35 crore by railway part and component importers, including Delhi Metro Rail Corporation (DMRC), Eastern Railway and central government's PSUs - Bharat Earth Movers Limited (BEML) and Container Corporation of India (Concor).
Sources said the DRI's Patna unit received intelligence inputs that certain importers were importing railway parts/components, which falls under Customs Tariffs, without paying counter veiling duty (CVD) at the rate of 12% as prescribed in the Finance Act 2012.The importers had been paying CVD at the rate of 6% only.
The DRI during investigation at Kolkata port discovered similar duty evasions at all major ports in the country. "Since DRI officials have all India jurisdiction, we extended the scope of investigation to cover entire country," DRI's Patna unit assistant director Vidyut Vikash said on Tuesday.
Altogether 24 notices have been issued to different importers across the country, asking them to deposit the differential amount along with interest.
Even Eastern Railway has been found to be a defaulter. A demand notice of Rs 8.5 crore has been slapped on it on the basis of assessment done by the DRI officials. Similarly, Concor has been asked to deposit around Rs 2.01 crore, the sources said.
Fearing action by the DRI officials, many importers have deposited the differential duty along with interest. Sources said approximately Rs 22 crore of the estimated evasion of over Rs 35 crore has so far been recovered from the evaders. The BEML has deposited Rs 11 crore, BESCO Ltd Rs 2 crore, Jupitor Wagon Ltd Rs 1.47 crore and DMRC has deposited Rs 56 lakh.
"The matter is still being investigated. If need be, we may arrest some officials," Vikash said.