Circular No. 36/2003-Cus.
25th April 2003
Government of India
Ministry of Finance & Company Affairs
Department of Revenue
Sub : Export of coloured water in the guise of printing ink (industrial grade) on the basis of forged documents showing examination and supervision under Central Excise authorities for availing undue DEPB benefit by
(1) M/s. Sweety International Pvt. Ltd. &
(2) M/s. Trend Setters, Coimbatore – Novel Modus Operandi – reg.———-
Commissioner of Customs (Import), Mumbai has reported a novel modus operandi adopted by the subject two parties with a view to illegally avail benefits under DEPB Scheme. The exporters used to pick containers from shipping agents at Mumbai and show as if these containers were to be transported to their factory premises at Viralimalai (Tamilnadu) for stuffing of goods. However, actually the containers were kept at storage yard at Mumbai for some days and it never went to Viralimalai or stuffed with the declared export product namely, printing ink (industrial grade). Instead after some days, these containers were taken out of the storage yard and stuffed at Bhiwandi/Vasai (outskirts of Mumbai) with coloured water by mis-declaring it as printing ink (industrial grade) and then transported to JNPT for export. On the basis of forged export documents, the goods were boarded on the vessel for export based on the forged examination report of Central Excise Superintendent, Trichy in token of having supervised the factory stuffing of export goods at Viralimalai. Investigations conducted so far by CC(Import), Mumbai has revealed that the firms had shown export of printing ink (industrial grade) of total value Rs.33.5 crores under DEPB Scheme in this manner and had availed DEPB benefit of Rs.4 crores approximately. Investigation also reveals that Directors of M/s. Sweety International Pvt. Ltd. had adopted the same modus operandi showing exports in the name of some other firms also.
2. The above modus operandi may be brought to the notice of customs field officers under your charge to prevent its recurrence.
3. Receipt of the Circular may kindly be acknowledged.
Officer on Special Duty (DBK)