TIOL-DDT 706 · Tuesday, 25 September 2007 · story 4 of 4

Road rash – goods imported for Road projects diverted

It is learnt that the Mumbai Customs have booked several leading construction companies for diverting goods imported without payment of duty for construction of roads. The Customs have already realised Rs. 4 Crores out of the expected Rs. 7 Crores evasion. How does the Customs ensure that the imported goods are indeed used for road construction? One of the conditions of the exemption notification is that the imported goods are not sold or otherwise disposed of in any manner for a period of five years from the date of importation. Again does the Customs Department have any mechanism to check that these goods are not sold within five years? Do they drive down the swanky national Highways to find out what happened to all those imported goods?