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Journalism of Courage
VADODARA, Sept 27: A major excise scam to the tune of Rs 200 crore by 20 textile units in Gujarat and Maharashtra was recently unearthed by Directorate General of Anti-Evasion DGAE.
According to sources, all the companies involved in the racket were 100 per cent export-oriented units manufacturing and exporting polyester yarns. Under the export promotion scheme of the government of India, such companies are granted excise and other concessions on the finished products, apart from concessions on customs duty for import of raw materials. They can also transfer their polyester yarns to other EOUs without payment of excise duty.
Sources said that on the pretext of transferring polyester yarns to other EOUs, the companies under investigation released their goods in the local markets of Surat and Bhiwandi. As they enjoyed the concessions they sold their goods at much lower price than non-EOU companies, who suffered losses due to unequal competition, sources added.
Sources said two Mehsana-based companies belonging to a Vadodara industrialist evaded excise to the tune of Rs 15 crores.
