Mmtc Fined Rs 50 Lakh By Customs Department

The customs adjudicating authority has slapped a fine of Rs 50 lakh on MMTC Ltd and ordered it to pay Rs 5.8 crore as customs duty for 147 kg of gold. The fine and duty have been imposed on the superstar trading house for the non-export of duty-free gold, which was imported between October 1992 and June 1994 by MMTC to be loaned to jewellery manufacturing units for export of gold jewellery.

Customs commissioner Krishna Kant noted in the adjudicating order that MMTC was liable to be penalised under the Customs Act as the imported gold had been used for purposes other than the export of jewellery.

 

A senior MMTC official said the matter had been taken up with senior officials of the finance ministry. The corporation also plans to appeal to the Customs, Excise & Gold (Control) Appellate Tribunal against the order.

MMTC has taken the stand that since the gold had been handed over to jewellery manufacturing units, it was the responsibility of these units to ensure that the gold was exported. It has also claimed that it was only concerned with loaning the gold and obtaining payment for the same.

However, customs authorities have ruled that the responsibility of paying customs duty rested with the superstar trading house, since it had imported the gold and signed a bond with the customs authorities that the gold would be exported. In case of non-export, the bond provides for duty to be paid, added the authorities.

Since the noticee (MMTC) failed to fulfil the provisions of para 88C of the Exim policy 1992-97, it appeared that they had violated the conditions of the scheme and thereby violated the provisions of the customs exemption notification, the adjudication order states.