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Adani Cos alleging Rs. 5,000 crores over-invoicing of imported over equipment to claim duty benefits by DRI

A Customs, Excise and Service Tax Appellate Tribunal has set August 30 for the final hearing of a Directorate of Revenue Intelligence (DRI) appeal against an order quashing over-invoicing allegations against three Adani Group firm.

The tribunal’s decision last month came after the Adani Group approached it seeking early hearing of the matter, saying that it had been getting enquiries from independent directors, auditors, financial institutions and lenders about the status of the case.

The DRI had sent show cause notices to Adani Power Maharashtra, Adani Power Rajasthan and Maharashtra Eastern Grid Power Transmission Company alleging Rs. 5,000 crores over-invoicing of imported over equipment to claim duty benefits. In 2017, the adjudication authority dropped all the proceedings against the firm, but the DRI appealed the order before the tribunal.

Since the dispute involved a huge amount, it has “a vital impact” on the appellant’s group companies, according to the plea.

An Adani Group spokesperson said the companies had filed applications before the tribunal in Mumbai in February 2020 seeking early hearing. After hearing the customs department as well as the companies, the tribunal on July 26 allowed the early hearing application and listed the matter for final hearing on August 30, the spokesperson said in response to ET’s questions.

The DRI had accused the three forms of inflating the total declared value of the good imported under power and infrastructure heads, which attracted zero or less than 5% duty. S-ET

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