AAI under scanner for Rs10-cr duty evasion

New Delhi: The Airports Authority of India has found itself on the DRI radar for evading more than Rs10 crore duty.
Top AAI officials have been questioned by the Directorate of Revenue Intelligence’s Delhi zonal unit, which is investigating the matter.
AAI is alleged to have imported radars, airport navigational equipment and VHF equipment wrongfully by claiming exemption under the Foreign Trade Policy’s Served-From-India Scheme.
However, the items imported were in the restricted list of and, thus, liable for duty.
DRI officials are tightlipped. “We can’t reveal much except that we have recorded statements of the AAI officials concerned and they have paid most part of their duty. The matter is under investigation,” said a senior official.
The Served-From-India scheme allows service providers (for services listed under the FTP) to claim a duty exemption on freely importable items (of capital goods including spares, professional equipment, office furniture and consumables related to business) if they have earned a total free foreign exchange of at least Rs10 lakh in the preceding financial year.
The foreign trade policy permits duty exemption of up to 10% of the total foreign exchange earned by such service providers.
10/12/07 Aditya Kaul/Daily News & Analysis

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Categories: Airports Dec 2007