ISPL faces excise probe

NEW DELHI, Jan 31: The Directorate General of Anti-Evasion Central Excise is investigating the Rs 150-crore Indian Shaving Products Limited ISPL, a subsidiary of the US-based Gillette Inc, for alleged excise duty evasion to the tune of Rs 3 crore. The company 8211; which manufacturers Gillette and 7 O8217;clock brand of razors and blades 8211; is being suspected of suppressing the assessable value of the products to pay less excise duty in violation of the valuation provisions. However, the company has categorically denied the charges of under-valuation.

Department of Revenue sources said the company was allegedly paying excise duty at the under-valued price 8211; which was normally less than a fourth of the maximum retail price MRP of twin-edged razors and blades. The anti-evasion officials searched the office and factory premises of ISPL at Bhiwadi Rajasthan and Delhi last week to scrutinise the records of the company. The job workers are also being questioned in this connection.

Excise officials are confidentof finalising the details regarding the amount of duty evasion in the next 8-10 days. Incidentally, razors and blades are among the personal care products that are being considered by the Central Board of Excise and Customs for levying excise duty on the basis of MRP 8212; this was introduced introduced last year to check suppression of value.

Vijay Mathur, director legal and corporate affair in ISPL, denied having suppressed the assessable value to pay less excise duty. quot;There is a dispute between the company and the excise authorities on the issue of valuation but we are doing everything as per the norms. The excise officials visited the company offices recently to collect some information. We provided them all the documents. We have nothing to hide,quot; he added.