Country’s largest private sector lender ICICI Bank has paid Rs 53 lakh in a duty evasion case relating to manufacture and sale of gold coins.
“ICICI Bank being the brand owner has admitted the facts and implication (in the duty evasion case) and paid an amount of Rs 53.08 lakh towards their duty liability including interest of Rs 7.29 lakh,” Central Excise Commissionerate (Kolkata) said in a statement.
The duty evasion on manufacture and sale of gold coins by the ICICI Bank was discovered by the Anti-Evasion Unit of the Kolkata Commissionerate,it added.
Although the ICICI Bank has admitted the facts and paid Rs 53 lakhs,it said,”further investigation is in progress”.
During inquiry,the statement added,it was “revealed that ICICI Bank has manufactured branded gold coins through job-worker for their corporate customers and sold/redeemed through their branches located throughout India during March 1,2011 to March 16,2012 without payment of duty…and thereby evaded central excise duty to the tune of Rs 45.79 lakh”.
The duty was imposed under Rule 12AA of the Central Excise Rules,2002 which deals with registration,maintenance of accounts,payment of duty etc. with regard to manufacture of jewellery on job work basis.
Job-worker has been defined as a person engaged in manufacture or processing of article of jewellery on behalf and under the instructions of the brand owner.