DRI detects Rs 50 cr duty evasion at Kandla port

The revenue Intelligence department has detected duty evasion of Rs 50 crore on the imports of iron ore pellets at Kandla port by seven leading Kutch-based steel manufacturing units, officials said.

"Duty evasion of Rs 50 crore has been detected on imports of iron ore pellets valued at Rs 500 crore in the last one year by over seven Kutch based steel manufacturers at Kandla port," said a Directorate of Revenue Intelligence (DRI) official.

"The imports were largely from countries like Russia and Bahrain. The steel making units were found evading the countervailing duty or additional custom duty of around 10.3 per cent on the pellet imports" he said.

According to DRI, the Government vide a notification in 2006 had exempted iron ore imports from any duty. "But, the units were found to be availing the duty exemption even on the import of manufactured products of iron ore, which was not permissible as per rule," a DRI official said.

"Prima facie, the declarations made by steel units of Gandhidham and Kutch were found to be matching with the goods imported, but investigations revealed that it attracted countervailing duty," he said.

The concerned units are likely to deposit the required duty soon, sources said.