Page 135 - DRI ANNUAL REPORT EBOOK

with forged ‘’BIS/Test Mill Certificates. Acting on the aforesaid information 204.44 MTs of CRGO Steel Sheets were also seized. The importer admitted the violation and an amount of Rs. 53.50 Lakhs was deposited towards differential duty. Premilionary scrutiny of available data of imports all the group companies indicates total duty evasion to the tune of Rs. 10 Crores. During investigation 150.93 MTs. of CRGO Steel Sheets imported in past were also detained and import documents were resumed from the office premises of the CHA. Further investigation is under progress.
3. On the basis of specific intelligence, DRI initiated investigation that various exporters for engaging in exporting insecticides/herbicides falling under CTH 38091 by mis-classifying these products under CTH 3808 9910 as ‘Pesticides not elsewhere specified’’ or under CTH 3808 9990 as ‘other’ in shipping bills at the time of export to avail higher rate of Merchandise Export Incentive Scheme (MEIS) benefit @3% provided under CTH 3808 9910 and 3808 9990 instead of their actual entitlement of MEIS @ 2% provided under CTH 380891 for insecticides/ Herbicides/ Fungicides. The authorized/concerned persons of the associated companies, in their statements admitted that the products exported by them were insecticides/Herbicides and classifiable under 380891 and entitled for MEIS benefit @2% and they have availed/ claimed higher rate of MEIS incentive @ 3% by way of misclassification of these products under 380899. Total undue benefit earned by such exporters under MEIS Scheme amounts to Rs. 47.46 Crore and the companies have voluntarily deposited an amount of Rs. 53.37 Crore (with interest) towards wrongful availment of excess MEIS benefit along with applicable interest. Further investigation is under progress.
4. On the basis of specific intelligence, DRI initiated investigation against certain importers for adopting incorrect classification in respect of “Aluminium Formwork Material/System’’ imported from Republic of Korea under Customs Tariff Heading 76109010/20 and claiming ineligible exemption under Sl No. 610 of the Notification No. 152/2009 Customs dated 31.12.2009 instead of adopting correct classification under Customs Tariff Heading 84806000, investigation was initiated against eight importers. The total duty liability in respect of eight importers has been estimated to be around Rs. 21.50 Crores. The importers have voluntarily deposited an amount of Rs. 13.85 Crores towards their adjudication liabilities.
5. On the basis of specific intelligence, DRI initiated investigation in the export incentives such as Duty Drawback, MEIS etc. on the various products exported to exporter’s wholly owned overseas subsidiaries and also raising credit notes on a quarterly, half yearly or yearly basis to their wholly owned overseas subsidiaries on account of transfer price adjustment. The exporter availed the export incentive on the entire value of the export proceeds, based on the bank realization certificate (BRC) submitted by them. The exporter accepted the error and deposited Rs. 35 Crores voluntarily on account of excess export incentives availed by him. Further investigation is under progress.
6. On the basis of specific intelligence, DRI initiated investigation against import of miscellaneous electronic items made by Delhi based importers. Investigation revealed under-valuation/ mis-declaration in import as well as payments to actual suppliers by adopting the ‘hawala’ channel. Statement recorded under Sec 108 of Customs Act, 1962, indicated that Director of
SMUGGLING IN INDIA REPORT 2019-20 101