Tuesday, November 13, 2018

DRI probes domestic aviation majors for alleged duty evasion

Mumbai: The Directorate of Revenue Intelligence (DRI) is investigating alleged duty evasion of Rs 300 crore by domestic aviation and aerospace firms on import of certain accessories used with aircraft in the last one year, sources have told The Indian Express.

The DRI is probing InterGlobe Aviation Ltd, Jet Airways (India) Ltd, Air India, Go Airlines (India) Ltd and Hindustan Aeronautical Ltd (HAL) for allegedly paying lower integrated goods and services tax (IGST) by “wrongly classifying” certain imported accessories and components used with aircraft as “parts of aircraft” which attract a much lower duty rate.

Under the norms, parts of aircraft classified under customs tariff heading 8803 attract 5 per cent IGST while the IGST applicable on other goods is between 18 per cent and 28 per cent, depending on its classification.

The DRI has contested that while the accessories imported by the aviation firms under probe were meant for aircraft, under the Customs law these imported components do not qualify as parts of aircraft. Last week, the agency issued summons to these firms, asking them to produce documents pertaining to the case and also recovered about Rs 65 crore from a few airlines that have allegedly accepted the stance of the investigating agency.
13/11/18 Khushboo Narayan/Indian Express