The Directorate of Revenue Intelligence (DRI) is currently investigating cases of commercial fraud which include undervaluation of consignments of exquisite Daum crystalware of France, Lladra of Spain and furniture from Italy.
Interestingly, both the crystal and porcelain consignments had been imported by a Calcutta-based trading company named Porcelain Crafts and Components.
The Calcutta High Court has given the Commissioner of Customs four weeks time to adjudicate the case related to Lladra porcelain figurines.
The first hearing at the customs commissioner's office was conducted on Monday. DRI authorities contend that the price of the figurines, declared, was Rs 3 lakhs, while the actual price was around Rs 50 lakh and hence evasion of duty has been pegged at Rs 30 lakh. While the goods had been manufactured in Spain, the invoice had been prepared at Hong Kong.
"We have detected that most of the commercial frauds pertain to invoices made in countries in South-east Asia,", said a senior source at the DRI.
The source points out that the department is currently investigating alleged undervaluation of a series of consignments of a substance called 'damar batu', which is an essential ingredient for preparation of incense sticks. Invoices for consignments of the substance, which head for India, are prepared at Singapore from Myanmar, Indonesia and Thailand. The original price of may be anything between $800 to $350 per tonne.
However, in the invoice paper issued for India, the prices are depressed between $250 to $170 per tonne. The department's zonal office in Calcutta is currently investigating cases which entail duty evasion to the extent of Rs 4 crore.
These include undervaluation of tinplate waste imported from UK, Japan, Germany and the US; a series of consignments of second-hand minicolor labs for photo studios imported from Japan and manufactured by Noritsu and under-declaration by private marketers of value of special kerosene oil, purchased from the IOC on high sea sale.
According to sources at the DRI, traditionally smuggled items such as gold and silver and items from third countries have declined, while commercial frauds related to undervaluation, wrongful availment of duty exemption of entitlement certificate and wrong classification of items are on the upswing.
