News Update

Vizag DRI sleuths seize 1161 kg Ganja concealed under gravel material being transported by lorryBefore GST roll-out Union of India to scrap 16 Cesses of Excise and Service Tax; to cost Rs 65,000 Crore to ExchequerPMs constituency Varanasi to host third G-20 Framework Working Group meeting on WednesdayIndian Navy to de-induct Long-Range Maritime Patrol Aircraft after 29 yearsCBI Court convicts former Oriental Bank Manager & othersST - Claim for exclusion of amounts on basis of acting as pure agent can be made only if all conditions for such concept are fulfilled: CESTATCBEC to be renamed as CBIC; to have 101 GST Commissionerates, including 50 Appeals CommissioneratesApplications invited for First Secretary (Legal) at PMI at WTO, GenevaPangs of GST - Govt sets up Working Groups to address peculiar problems of industryCX - Annual Production Capacity - Actual Production vs deemed production - Legal Fiction vs Presumption - Supreme Court refers matter to Larger BenchCBDT directs officers to grant interest waiver in certain casesOROP - Pension to be reviewed every 5 yearsIncome Tax searches lead to seizure of Rs 3625 CroreUnclaimed Deposits in Banks & Insurance Companies exceed Rs 8000 CroreCST compensation to States: Centre to release Rs 5834 Crore before Mar 31CCI imposes Rs 51K penalty on Kerala MP heading film association as PresidentCX - Any relief under doctrine of promissory estoppel can be enforced only in hands of Courts - Tribunal cannot arrogate to itself such powers: CESTAT4.5% Indians suffer from depression: MinisterDelhi Insurance Ombudsman Office gets ISO certificationCommissionerates fail to pay court fee stamp - CBEC releases ListGST Bills copies being printed; to be tabled on MondayTrump's attempt to substitute Obamacare failsGovt approves nine FDI proposals involving proposal worth Rs 659 CroreCustoms Duty on Sunflower seeds (1206 0090) for the purpose of extraction and refining of oil reduced to 10% for the period 1st April 2017 to 30th September 2017GST high on Alcohol Manufacturing IndustrySFO in UK doing well to deal with foreign bribery casesIndian Cement Industry accounts for only 7% of global needsI-T - Excess stock found during survey which did not belong to assessee but to its Karta in his individual capacity, cannot be added to assessee's closing stockCX - It is 'nature of order' of Tribunal and not 'scope of appeal' that determines maintainability: HCCus - DRI officials at wedding premises - Calling payments as voluntary is turning a blind eye to harsh realities: HCST - Since CESTAT has remanded matter, it cannot be said that any substantial question of law would arise for consideration: HC
 
Chennai Customs detects mega drawback fraud involving exports of Rs 200 Crore

By TIOL News Service

CHENNAI, Oct 14, 2005 : TO keep the exporting community happy the Government has hugely liberalised the exports benefits procedures. But it also offers huge opportunities to fraudsters to take the exchequer for a ride. And this is what has happened here in Chennai Air Cargo Customs. One exporter named K Gunasekhar from Coimbatore floated as many as 46 fake firms here in India and just one firm in Dubai for receiving the junk goods and made exports worth more than Rs 200 Crore in the past two years and claimed duty drawback benefits of Rs 19 Crore.

The scam was detected by the ACIU when it intercepted two consignments of 127 packages declared to contain leather shoe uppers for adults. These consignments were covered by 10 shipping bills - five filed by M/s R G Impex of Mumbai and rest by M/s Poppy Leather and Apparel from Coimbatore. The total value declared was Rs 1.8 Crore. On examination except for 16 packages all of them had only torn / used shoe uppers worth not a penny.

After seizing the consignments for misdeclaration a manhunt was launched to locate the mastermind. A detailed scrutiny revealed that 46 firms were floated by the alleged fraudster who had done exports worth Rs 200 Cr since 2003. And all the exports went to just one Dubai-based firm M/s Fild Line Trading LLC in which he was a partner. Obviously no payment was ever received in India for all these consignments.

Out of a total drawback benefits of Rs 19 Crore the Customs had blocked Rs 2.5 Crore and recovered Rs 6 lakh but the rest are gone. Nine persons were arrested in this connection. And finally the Customs managed to nab the mastermind who had been evading arrest.

Finally it was revealed that Gunasekhar in association with his borther-in-law Divakar and one Jayaraman used to procure goods from various places in Tamil Nadu and export them through various ports like Chennai, Coimbatore ICD and Tirupur ICD.


 RECENT DISCUSSION(S) POST YOUR COMMENTS
   
 
Sub: Kudos to ACIU Chennai

ACIU Chennai has done an excellent job in nabbing Drawback fraudster Gunasekar. This king of drawback frauds are becoming common. It SHOWS THAT THERE IS SERIOUS LACUNAE IN CUSTOMS EXAMINATION OF CARGOS UNDER DRAW BACK.IN 1970 Coimbatore is known for counterfeit notes. Now the fraudsters have switched over to bogus exports taking advantage of poor vigilance or lack of it in CUSTOMS. ALL ICDs should be closely monitored in view of this mega fraud. Connivance aslo can not be ignored. This 19 Crore fraud should serve as an eye opener to review the export incentives offered mindlessly.
Every one has to take the blame.
By,
M.RAM KUMAR,
BANGALORE.

Posted by ramkumar ramkumar