The Hindu Business Line : Excise duty facilities withdrawn for three cos

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New Delhi Feb. 2 The Finance Ministry has withdrawn two important facilities - of monthly payment of excise duty as well as Cenvat credit utilisation - for three companies following alleged excise duty evasion by them.

Action has been initiated against Shriram Tubes Pvt Ltd, Ahmedabad, Taha Wire Pvt Ltd, Daman and Nissan Copper Ltd, Silvassa under the new deterrent provisions available to the Finance Ministry since early January this year.

The Central Board of Excise and Customs (CBEC) spokesperson, Ms Hemambika Priya, confirmed that the orders issued against these three companies were the first set of deterrent action against Central excise duty evaders since the deterrent provisions came into force early last month. These orders would be valid for three months and cannot be challenged at any appellate level.

Total duty evasion

"The total amount of duty evasion by these three companies stood at about Rs 13 crore. This is just the beginning and we have more cases in the pipeline", she said at a press conference here on Friday.

She also said that these three units would have to pay excise duty on a daily basis as and when they clear the goods from their units.

Asked whether all the units under these companies would come under physical control, Mr Sushil Solanki, Commissioner (Central Excise), said that they would not come under physical control as this was the first offence of these companies after the deterrent provisions came into effect.

In the case of Shriram Tubes, the total duty evasion is about Rs 10 crore.

This company is alleged to have indulged in evasion of Central Excise duty by clearing goods clandestinely in the guise of job work.

The CBEC spokesperson also said that the premises of Taha Wire Pvt Ltd, Daman and Nissan Copper Ltd, Silvassa were searched and that the search prima facie revealed that the two units had fraudulently taken Cenvat credit of Rs 1.67 crore and Rs 1.28 crore respectively.

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