Mumbai: The Customs department recently imposed a collective fine of Rs 148 crore on six companies, four central excise employees and a chartered accountant in a case involving fraudulent claim of export incentives. The department has also sought Rs 44 crore for evasion of duty.
A government scheme allowed companies to import raw materials duty-free, provided they export the finished goods. In this case, Shalimar Rexine imported raw material without paying any duty for manufacturing PVC leather, but sold it in the market here.
Additional commissioner of customs Nasim Arshi, in his adjudication order, said, “Supreme Rexine Industries Ltd, Sunrise Exim and Supreme Import and Export were inter-related firms formed with the aim to import raw material by availing exemption from duty and then exporting cheaper quality of PVC leather cloth. This was re-imported and again exported to show artificial discharge of export obligation.’’
Afzal Khan, Yunus Khan, Firoz Khan, directors or owners of Supreme Rexine, Sunrise Exim and Crescent Overseas, plotted the entire fraudulent operation to hoodwink the department of Rs 220 crore.
The case dates back to September 2005, when Customs officials at Nhava Sheva examined Shalimar Rexine’s export consignment and found difference in the weight of the PVC leather cloth. Customs investigations found that Supreme re-imported some of the consignments sent to Dubai and abandoned them after the investigations started. It was also found that Dubai port authorities had blacklisted Shalimar Rexine and auctioned some of the consignments.
Firoz Khan created Crescent to facilitate some of the re-imports which were exported, the adjudication order said. Sunrise was also created as part of the modus operandi. Customs also imposed a fine on three other companies who participated in the fraud.
All those who were found guilty denied the charges before Nasim Arshi. The officials were fined Rs 50,000 each for not following due diligence in the clearance of goods. The Khans and the three companies where they had interests were collectively fined Rs 147 crore. Chartered Accountant Lalit Thakkar was fined Rs 10 lakh. He was fined for issuing certificates confirming export figures which were not genuine. Shalimar Rexine had admitted to Rs 30 crore liability before the settlement commission but did not pay up, officials said.
Courtesy:
C Unnikrishnan TNN
http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=TOIM/2012/10/01&PageLabel=4&EntityId=Ar00402&ViewMode=HTML
A government scheme allowed companies to import raw materials duty-free, provided they export the finished goods. In this case, Shalimar Rexine imported raw material without paying any duty for manufacturing PVC leather, but sold it in the market here.
Additional commissioner of customs Nasim Arshi, in his adjudication order, said, “Supreme Rexine Industries Ltd, Sunrise Exim and Supreme Import and Export were inter-related firms formed with the aim to import raw material by availing exemption from duty and then exporting cheaper quality of PVC leather cloth. This was re-imported and again exported to show artificial discharge of export obligation.’’
Afzal Khan, Yunus Khan, Firoz Khan, directors or owners of Supreme Rexine, Sunrise Exim and Crescent Overseas, plotted the entire fraudulent operation to hoodwink the department of Rs 220 crore.
The case dates back to September 2005, when Customs officials at Nhava Sheva examined Shalimar Rexine’s export consignment and found difference in the weight of the PVC leather cloth. Customs investigations found that Supreme re-imported some of the consignments sent to Dubai and abandoned them after the investigations started. It was also found that Dubai port authorities had blacklisted Shalimar Rexine and auctioned some of the consignments.
Firoz Khan created Crescent to facilitate some of the re-imports which were exported, the adjudication order said. Sunrise was also created as part of the modus operandi. Customs also imposed a fine on three other companies who participated in the fraud.
All those who were found guilty denied the charges before Nasim Arshi. The officials were fined Rs 50,000 each for not following due diligence in the clearance of goods. The Khans and the three companies where they had interests were collectively fined Rs 147 crore. Chartered Accountant Lalit Thakkar was fined Rs 10 lakh. He was fined for issuing certificates confirming export figures which were not genuine. Shalimar Rexine had admitted to Rs 30 crore liability before the settlement commission but did not pay up, officials said.
Courtesy:
C Unnikrishnan TNN
http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=TOIM/2012/10/01&PageLabel=4&EntityId=Ar00402&ViewMode=HTML
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