Fraudulent Rebate Claims – DGCEI alerts field
On verification of a rebate claim, it was found that the manufacturer had not supplied the goods to the exporter. It was also found that the shipping bills were not entered in the records of the Custom House, which confirmed that there was no physical exports of goods and the rebate claims were bogus.
In another case it was found that the units where the export goods were claimed to have been manufactured do not have adequate manufacturing facilities, the job workers were either non existent or did not possess adequate processing facilities, the export goods were found to have not been transported by the vehicles mentioned in the documents. Further, on verification at the input suppliers end, the parties issuing cenvatable documents have been found to be non existent.
DGCEI cautions the field to be careful about such frauds, but can such things happen without the active support of the department?
ALERT CIRCULAR NO. , Dated : August 17, 2006