9 infrastructure firms booked for evading import duty

February 20, 2008

Nine infrastructure firms having interests in road building have been booked by the Customs authorities for allegedly evading import duty totalling Rs 20 crore on heavy engineering equipment.

The firms, including Punj Llyod Ltd, Gammon India and Era Constructions, have allegedly imported machinery for purposes other than for which they were allowed to be imported duty free, a Customs official said here.

“Duty exemptions were granted to the firms working on National Highway Authority of Indian projects and other projects funded by international development agencies like those of Asian Development Bank and United Nations,” the officer said.

The companies, however, have been found to have diverted machinery imported under duty exemptions to other private projects and hence were liable to pay necessary duties, he charged.

During initial investigations, the authorities have established alleged duty evasion of Rs 20 crore.

Notices were sent to all the nine firms and Rs 12 crore in duties have already been recovered, he said, claiming the firms have admitted to have diverted the machinery.

“We started investigations into the matter around five months ago. Though many of the firms are based outside the city, the cases have been made in Mumbai as all the machinery had landed at the Mumbai port. It will take some time for us to impose the penalties,” the officer said.

Source: timesofindia.indiatimes.com