Misuse of EPCG Scheme by Rashmi Cement Ltd.

[Ref: DIR, Kolkata Press Release dated 9th June 2010]

On the basis of specific information DRI Kolkata Zonal Unit searched the office and factory premises of M/s. Rashmi Cement Ltd. on 04.06.2010, who imported “prime mild steel hot rolled coils” at concessional rate of duty under E.P.C.G. scheme through Kolkata port and sold in the local market without utilisation in their factory for manufacture of capital goods as declared. Preliminary investigation revealed that they had imported 4841 MT of mild steel hot rolled coils under E.P.C.G. scheme in March, 2010 and out of which 3749 MT was sold into local market and thus evading a huge amount of Customs Duty. On initiating the investigation, the importer admitted the aforesaid fact and paid the entire differential duty of Rs. 1.81 crores involved on the imported goods on 07.06.2010. Further investigation is in progress.