DRI unearth illegal practice in firms

Department of Revenue Intelligence (DRI) has unearthed illegal practice by Indian firms of saving import duty on goods and machinery imported from China. Recently, the state unit of DRI received a tip-off about paper cup machines ICD in Gadhi Harsaru in Haryana brought without paying import duty. The preliminary investigation found that some firms imported 337 paper cup machines by not revealing the actual cost to save on import duty.

The follow-up action by the DRI resulted in a recovery of Rs 1.63 crore as import duty along with interest from two importers while another one is yet to pay Rs 1.86 crore. According to sources, the three businessmen from Rajasthan too had imported paper cup machines. One of the firm was based in Alwar that imported 185 machines but did not reveal actual cost evading Rs 1.2 crore in import duty and interest.               

The DRI investigation revealed that the machine cost $13000 but the invoice price was shown $7500. The difference in the actual price and the one shown in the invoice was paid to the Chinese company with help from a Jaipur based hawala trader Tarun Baid.

The DRI seized mobile of an accused importer in which complete detail of money transaction was found on Whatsapp messages. The DRI has issued three summons to the importer but fearing arrest he did not appear before the officials. The case was registered against him and the matter is pending in the court. Following the Rajasthan unit’s action, the DRI headquarter has issued alert to all ports in the country.