DRI detects Rs 4 crore duty evasion

Ahmedabad: The Ahmedabad zonal unit of Directorate of Revenue Intelligence (DRI) on Wednesday unearthed a multi-crore duty evasion scam by a Vapi-based firm in nylon partially oriented (NPO) yarn. The yarn was imported with duty exemptions meant for exports, but was sold in the domestic market.
The duty evasion spotted by DRI so far is around Rs 4 crore.Further investigation is under progress. Following DRI's action, by Wednesday evening, the firm deposited Rs 2 crore with concerned authorities. "Working on specific intelligence received from sources, we found that Sarla Performance Fibres Ltd, a 100% EOU (export oriented unit) was evading anti-dumping duty on partially oriented yarn. The yarn was being cleared to the domestic tariff area (DFA), while it was meant to be exported in form of finished goods," said a DRI official.
The factory premises at Silvassa and Vapi were searched by DRI sleuths and the documents recovered indicated that the firm was not paying anti-dumping duty on clearance of goods to DTA, which were manufactured out of imported NPO yarn, said DRI sources.
According to rules, anti-dumping duty is levied on import of NPO yarn originating from certain specific countries. However, a 100% EOU is exempt from the payment of anti-dumping duty. This exemption, however, is not applicable if the goods are cleared into DTA as such, or used in manufacture of goods cleared in DTA.