Excise department sources said the duty has been demanded from the three tyre manufacturers as the companies had allegedly tried to evade excise duty by clearing light commercial vehicle (LCV) tyres as tractor trailor tyres, which attract a lower rate of duty than the former.

The companies had, in some cases, marketed the LCV tyres as tractor trailor tyres by changing the markings on the tyres, sources added. In separate orders, the department has confirmed Rs 14.55 crore as duty evaded by MRF, while Rs 6.27 crore has been confirmed as duty evaded by Apollo and Rs 3.05 crore by Vikrant Tyres.

Sources said the directorate general (anti-evasion) had conducted searches in early 1996 against almost all major tyre manufacturers in the country.Besides the three comanies which have been direted to pay the duty differential, adjudicationproceedings in similar cases are on against other tyre manufacturers and the department is expected to confirm the alleged duty evaded by these companies too, they added.

Sources said Apollo had branded and cleared LCV tyres as tractor trailor tyres during July 1991 to February 1996 and tried to evade excise duty. Investigations were initiated against the company and it was issued a show cause notice in July 1996.