HomeIndirect TaxesDRI Uncovers Rs. 20 Crore Import Duty Evasion in Luxury Furniture Scam

DRI Uncovers Rs. 20 Crore Import Duty Evasion in Luxury Furniture Scam

Published on

🚀 Stay Connected With JurisHour

WhatsApp X Telegram

In a significant crackdown, the Directorate of Revenue Intelligence (DRI) has arrested the proprietor of a freight forwarding firm based in Versova for orchestrating a large-scale import duty evasion racket involving luxury furniture. The estimated duty evasion stands at ₹20 crore, stemming from the alleged undervaluation of consignments imported since September 2021.

According to officials, the DRI conducted searches on May 27 at multiple locations connected to the firm, recovering numerous incriminating documents. The preliminary investigation revealed that the importer had falsely declared goods valued at just ₹24 crore. However, documents recovered during the raids suggest the actual value of these imports is close to ₹60 crore.

The DRI suspects that the massive undervaluation was part of a deliberate attempt to evade customs duty. During questioning, the arrested proprietor reportedly confessed to creating fake invoices and admitted instructing his staff to destroy key evidence. He also acknowledged receiving payments in exchange for falsifying documents.

Authorities have recorded statements from several individuals that helped expose the entire scheme. Further investigation is underway to determine the involvement of the actual owner of the furniture business, sources involved in procurement, and the role of hawala channels in moving funds overseas.

The case highlights ongoing efforts by the DRI to clamp down on trade-based money laundering and tax evasion practices, especially in the luxury goods sector.

Read More: Arrest of CGST Officials in Bribery Case Illegal: CBI Court Orders Immediate Release

Mariya Paliwala
Mariya Paliwalahttps://www.jurishour.in/
Mariya is the Senior Editor at Juris Hour. She has 7+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started her career as a freelance tax reporter in the leading online legal news companies.

Latest articles

Mere Balance Sheet Discrepancies Insufficient To Deny CENVAT Credit Without Evidence of Clandestine Removal: CESTAT

The Chandigarh Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has...

Single Form 141 to Replace Form 26QB: Change In Property TDS Compliance Framework

The Government has introduced a new unified reporting mechanism—Form 141—to replace the existing Form...

Forfeiture of Hotel Booking Advances Not Taxable as Service: CESTAT 

The Customs, Excise and Service Tax Appellate Tribunal, New Delhi Principal Bench, has held...

Unjust Enrichment Applies Even If Tax Not Payable: CESTAT Rejects Service Tax Refund

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, has dismissed the...

More like this

Mere Balance Sheet Discrepancies Insufficient To Deny CENVAT Credit Without Evidence of Clandestine Removal: CESTAT

The Chandigarh Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has...

Single Form 141 to Replace Form 26QB: Change In Property TDS Compliance Framework

The Government has introduced a new unified reporting mechanism—Form 141—to replace the existing Form...

Forfeiture of Hotel Booking Advances Not Taxable as Service: CESTAT 

The Customs, Excise and Service Tax Appellate Tribunal, New Delhi Principal Bench, has held...