DRI, Ahmedabad zonal unit detects Rs 4 cr duty evasion in NPO yarn

The Directorate of Revenue Intelligence (DRI), Ahmedabad zonal unit on Wednesday brought to light a Vapi-based firm, Sarla Performance Fibres Ltd, a 100% EOU (export oriented unit) evading anti dumping duty in nylon partially oriented (NPO) yarn. The yarn was being cleared to the domestic tariff area (DFA), meant to be exported in form of finished goods, said a DRI official.

The yarn was imported with duty exemptions meant for exports, but was sold in the domestic market. According to rules, anti-dumping duty is levied on import of NPO yarn originating from certain specific countries. However, a 100% EOU is exempt from the payment of anti-dumping duty. This exemption, however, is not applicable if the goods are cleared into DTA as such, or used in manufacture of goods cleared in DTA.

The duty evasion spotted by DRI so far is around Rs 4 crore. The factory premises at Silvassa and Vapi were searched by DRI sleuths and the documents recovered indicated that the firm was not paying anti-dumping duty on clearance of goods to DTA, which were manufactured out of imported NPO yarn, said DRI sources. Further investigation is under progress.

Following DRI’s action, by Wednesday evening, the firm deposited Rs 2 crore with concerned authorities.

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