The Hindu Business Line : Corporate houses served notices for alleged customs evasion

Alleging customs duty evasion on aircraft import, the customs department has issued show cause notices to high profile corporate houses such as the Reliance Group and the Oberoi’s-controlled East India Hotels.

Separately, for a similar issue, investigations have been initiated on corporate houses like GMR, India Bulls and Bharat Hotels, a Finance Ministry official confirmed to Business Line here on Thursday.

Aircraft import

A number of corporate houses had imported aircraft as non-scheduled operators. The Customs Department has now alleged in its showcause notice that aircraft has been imported for private use in the guise of non-scheduled operator (passenger) permit. Import of aircraft as non-scheduled operator entitles them to customs duty benefits in terms of lower applied rate of customs duty.

A central board of excise and customs (CBEC) spokesperson said that a showcause notice has been issued to Reliance Commercial Developers (P) Ltd (RCDPL) for Rs 57.42 crore of duty on import of an airbus A319 aircraft.

The spokesperson also said that two aircraft (including the one for which showcause notice has already been issued) belonging to RCDPL were seized in Mumbai on Thursday, but had been provisionally released on Friday.

The customs department has also issued showcause notice for Rs 13.92 crore to East India Hotels on June 26.

Reliance complies

Meanwhile, Reliance Industries said in a statement that “the authorities concerned (Customs department) as a matter of routine procedure have sent out notices to several non-scheduled operators.

As a part of this routine procedure two of Reliance Commercial Developers Pvt Ltd aircraft were detained and handed back to the company thereafter. Reliance is fully complying with all procedures as notified by the concerned authorities.”

More Stories on : Excise and Customs | Taxation | Reliance Industries Ltd

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