Mumbai: Directorate of Revenue Intelligence has issued Jindal Steel and Power Ltd (JSPL) show cause notice for Rs 55 crore duty evasion in its import of aircraft.
The company falsely declared the import under an exemption provision to evade duty, the notice said. DRI probe showed the aircraft was not used for purposes declared to the authorities.
The company had purchased an aircraft from Jay Aviation California for around Rs 244 crore in November 2008. It had declared the import under Non-Scheduled Operator Permit (Passenger) Services which is exempt from duty. This is basically used by air transport operators to provide public transport in areas not serviced by scheduled operators like the airline companies that run passenger flights between fixed destinations. The show cause notice also questioned the `priority charter agreement' between JSPL and Bharti Airtel Ltd (BAL) where the latter had the first right to use the aircraft in the last fortnight of every month. BAL had paid JSPL Rs 110 crore as security deposit, approximately 50 per cent of the aircraft cost.
14/01/14 C Unnikrishnan/Times of India
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The company falsely declared the import under an exemption provision to evade duty, the notice said. DRI probe showed the aircraft was not used for purposes declared to the authorities.
The company had purchased an aircraft from Jay Aviation California for around Rs 244 crore in November 2008. It had declared the import under Non-Scheduled Operator Permit (Passenger) Services which is exempt from duty. This is basically used by air transport operators to provide public transport in areas not serviced by scheduled operators like the airline companies that run passenger flights between fixed destinations. The show cause notice also questioned the `priority charter agreement' between JSPL and Bharti Airtel Ltd (BAL) where the latter had the first right to use the aircraft in the last fortnight of every month. BAL had paid JSPL Rs 110 crore as security deposit, approximately 50 per cent of the aircraft cost.
14/01/14 C Unnikrishnan/Times of India
