Trader held for evading Rs 3-cr duty

A Mumbai-based garment trader was arrested for evading duty liability of Rs3 crore. The Nhava Sheva Preventive Unit, which arrested Thakur Mulani, have booked him for improper declaration of goods. Mulani was remanded to judicial custody till January 25 by the Esplanade court on Tuesday.

Mulani had a Duty Exemption and Entitlement Certificate (DEEC) licence that allowed import of raw material for use in production of garments which he would export later. However, on September 28, 29 last, when the Customs department, on suspicion, checked two of their containers, they discovered non-declared goods being imported by Mulani’s company, M/s Gretex Impex, located near GT Hospital in South Mumbai. It was found that Mulani had not declared raw material the duty of which worked out to Rs 26 lakh. Not only that, the Customs department also found out that the exported items were not made up of the raw materials being brought into the country, as the law for DEEC licence specified.

However, the Customs department said Mulani admitted to the non-declaration of goods in both consignments and even agreed to pay differential duty and fine or penalty.  Also, a search at his Mulund home, office and factory at Bhandup on December 18, 2006 revealed documents relating to previous deals where imported raw material was not being used for finished good.

Also, were found bank statements, octroi receipts, and copies of test reports issued by Textile Committee.