Customs probe business tycoons' jets for duty evasion

Mumbai: The Central Board of Excise and Customs have sent notices to several corporates across India for evasion of customs duty on import of private jets. The evasion amounting to several hundred crores of rupees came to light after two jets belonging to Reliance Industries were seized by the customs officials in Mumbai.
Now private jets belonging to the corporate honchos are under the customs scanner.
The evasion of customs duty came to light after an investigation against Reliance Commercial Private Developers Ltd, a subsidiary of Reliance Industries, for evading customs duty of Rs 58 crore on the import of an Airbus 319 and a Falcon 900.
According to the rules corporate jets can be imported under two categories.
Jets imported under non-schedule category is used for renting out to a third party and attracts customs duty of 10 per cent while jets imported for personal use attract a higher customs duty of 18 per cent.
Customs department has alleged that corporate houses like Reliance evade eight per cent customs duty by importing planes meant for private use under the non-schedule category.
06/07/08 Jency Jacob/CNN-IBN

To Read the News in full at Source, Click the Headline

Categories: Indian Aviation- In General Jul 2008