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Saturday, May 30, 1998

Rs 365 cr excise evasion detected

Pranati Mehra  
MUMBAI, May 29: Pesticide firms formed the major bulk of cases of duty evasion detected by the Mumbai zonal unit of the directorate of anti-evasion of Central Excise this year.

Fifty seven show cause notices (SCN) involving alleged evasion of Rs 135 crore were served on pesticide firms, including some big names like United Phosphorus, Gharda Chemicals and Excel India.

The anti-evasion wing has issued 145 show cause notices during the year, alleging duty evasion to the tune of Rs 365 crore, additional DG, anti-evasion, P C Jha told Indian Express on Friday.

The corresponding figure for SCNs issued last year was 59 and the amount involved was Rs 133 crore.

New cases detected this year (1997-98) number 124, of which evasion was quantified in 92 cases, involving evasion to the tune of Rs 192 crore.

The pesticide firms had allegedly cleared technical grade pesticides as ready-to-use formulations which attract lower duty, thus evading about eight to ten per cent duty. The firms also lobbied unsuccessfullywith the finance ministry to get exemption under section 11-C of the Central Excise Act.

Duty evasion to the tune of Rs 30 crore by six television software companies was also detected, Jha said. UTV, Plus Channel, Nimbus Sports and TV, Creative Eye, B R Films and Prime Time were served SCN for alleged suppression of information regarding production of Umatic and Beta Cam video cassettes.

The other industry coming under the anti-evasion swoop was textile processing, with alleged evasions of Rs 16 crore. Two major brand saree sellers, Parag and Praful, were served SCN. The Ahmedabad-based Chiripal group is also allegedly involved. Evasion in this sector is usually by way of suppression of value of raw material and undervaluation of finished goods.

The British Oxygen Company was charged with evasion to the tune of Rs 2 crore by way of undervaluation. The Mumbai-based Sapna Engineering, suppliers of air conditioning and refrigeration parts, is alleged to have evaded duty to the tune of Rs 6 crore, again byway of suppressing production figures. Three persons were also arrested in this case.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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