A search on a number of premises yielded documents confirming the undervaluation of the imported equipment. A press note from Customs said such arcades and amusement game parlours are being set up in collaboration with multi-nationals in the city.

While investigations are on, the department has found undervaluation of 20-lane bowling alley equipment by way of revenue sharing with the foriegn supplier, in terms of the game and installation and technical fees. In this case, the company had declared US $ 15,000 for a single lane as against the correct value which should be US $ 35,000. The value of the goods declared was Rs 1.31 crore (CIF) as against the estimated Rs 3.10 crore (CIF).

The company has also paid the duty differential of Rs 93.72 lakh on detection of thecase.