Solar Companies Under Investigation For Rs 1,900 Crore Customs Duty Evasion

ENA Sectors 2024-02-05 16:20:49 New Delhi, Feb 5 (KNN) In a significant development, the Directorate of Revenue Intelligence (DRI) has launched an investigation into six solar companies for potential evasion of customs duty related to imports of solar panel components. The probe focuses on the period between April 2022 and October 2023, revealing instances of underpayment of customs and incorrect declarations during the import of solar cells and modules from China. Officials estimate the evasion to be around Rs 1,900 crore, but they anticipate this figure could rise as the investigation progresses, reported ET. The evasion reportedly occurred through the misuse of the project import route and the customs warehouse scheme. The government had imposed a 25 per cent basic customs duty on solar cells and a 40 per cent duty on solar modules from April 2022 to promote domestic manufacturing and reduce dependence on Chinese imports. To support the national solar mission, the Centre allowed imports at a concessional rate of 5 per cent under the 'project import scheme.' However, this provision was allegedly exploited by several solar companies to lower their tax liability. A senior official involved in the investigation stated, Many solar companies were routing their consignments through this channel, emphasising that these consignments exceeded project requirements. Additionally, companies reportedly misused the customs warehouse scheme, which allows the deferral of import duties until clearance without incurring interest. The initiation of the investigation dates back to November, and notices to the implicated companies are expected to be served shortly. While the official did not disclose the names of the companies involved, they affirmed the ongoing process of finalising assessments. This revelation comes in the wake of the DRI's previous probe into potential customs duty evasion by wind energy companies. The Ministry of New and Renewable Energy (MNRE) had flagged the issue, prompting the Central Board of Indirect Taxes and Customs (CBIC) to issue a circular in July 2022, revoking permissions for the customs warehouse scheme due to reported misuse by some solar firms. As the investigation unfolds, stakeholders eagerly await further details and potential ramifications for the accused solar companies. (KNN Bureau) 36574 https://knnindia.co.in/news/newsdetails/sectors/solar-companies-under-investigation-for-rs-1900-crore-customs-duty-evasion 2024-02-05 16:20:49 knnindia.co.in Solar Companies Under Investigation For Rs 1,900 Crore Customs Duty Evasion