homeeconomy NewsIndirect taxes department to soon adjudicate MRF, Bombay Dyeing and Vedanta for evasion on imports
Indirect taxes department to soon adjudicate MRF, Bombay Dyeing and Vedanta for evasion on imports
Additionally DRI Kolkata estimates to recover approximately Rs 2165 crore from importers in which the Duty comes at Rs 935 crore, the interest is at Rs 701 crores and the penalty is at Rs 529 crores. DRI, Kolkata Zonal Unit started investigation against more than 150 importers for suspected IGST evasion by misusing the Advance Authorization scheme.
The Central Board of Indirect taxes and Customs is planning to soon adjudicate show cause notices issued to importers for Integrated GST evasion, sources have told CNBC-TV18. The prominent importers who will be impacted by this are Bombay Dyeing, BALCO, Vedanta, JSW Steel and MRF.
Further CBIC has also issued orders to Directorate of Revenue Intelligence (DRI) field formations to begin adjudication in cases of misuse of pre-import and physical export conditions after April 28 Supreme Court verdict.
SC in a recent judgement ruled that Advance Authorization scheme mandates that export has to take place after import of raw materials to avail the IGST benefits.As per the judgement goods have to be imported first and used in the manufacture of finished products which should be exported and not sold domestically.
Also read: SC stays Delhi HC order on levy of IGST on imported oxygen concentrators for personal use
Additionally DRI Kolkata estimates to recover approximately Rs 2165 crore from importers in which the Duty comes at Rs 935 crore, the interest is at Rs 701 crores and the penalty is at Rs 529 crores. DRI, Kolkata Zonal Unit started investigation against more than 150 importers for suspected IGST evasion by misusing the Advance Authorization scheme.
Advance Authorization is one of the oldest export promotion scheme under the Foreign Trade Policy. It is a duty exemption scheme under which Inputs are permitted duty free subject to the inputs being used in the manufacture of goods which are exported.
Further DRI has been detecting cases of misuse of the scheme.
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