MM TAX CLUB

Directorate General of Foreign Trade (DGFT) vide Notification No. 13/2023 dated 22^nd June 2023 amended the Export policy of HS Code 2610 w.r.t Chromium Ores and Concentrates

In exercise of powers conferred by Section 3 read with section 5 of the Foreign Trade (Development & Regulation) Act, 1992 (No. 22 of 1992), as amended, read with Para 1.02 and 2.01 of the Foreign Trade Policy, 2015-20, the Central Government hereby amends Export Policy of items under HS Code 2610 related to Chrome Ore, as under:

Effect of the Notification:

The export items under HS Code 2610 have been placed under restricted category with immediate effect.

DGGI Gurugram officials bust racket involving 539 fake entities and fraudulently claiming ITC of Rs. 1,124.66 crore, one held

In another operation, GST evasion of Rs. 97.44 crore through a network of 19 fake entities busted

In an intelligence-based operation, the Directorate General of GST Intelligence (DGGI), Gurugram Zonal Unit, has unearthed a major fraudulent Input Tax Credit (ITC) racket involving 539 fake entities, which have passed on fraudulent ITC of Rs. 1,124.66 crore.  So far, one key operative has been arrested. 

On the basis of forensic examination, huge number of forged/morphed Aadhar card, PAN card, huge number of GST registrations of fake firms & sample invoices of fake firms etc. were detected. Initial investigations indicate that the fraudulent ITC credit has eventually travelled to the highly evasion prone metal/iron & steel sector. In this matter, Rs. 814.61 crore of ITC availed by these fraudulent entities, for the purpose of passing on, has been prevented from being utilised, this pre-emptive action has prevented further loss to govt. exchequer.

The DGGI Gurugram Zonal Unit officials have also detected a modus operandi prevalent in the trade of supply of mobile phones wherein mobile phones are purchased from grey market without any underlying invoice or from online e-commerce platforms in the name of various unregistered individuals. Some unscrupulous elements/persons hoard these mobile phones and supply them in bulk to various traders. However, as the goods are bereft of ITC that can be utilised further, these persons create a network of fake firms to generate fraudulent ITC and then use this fraudulent ITC for further discharging their GST liability.

So far, a network of 19 fake entities has been unearthed during a investigation and a detection of GST evasion of Rs. 97.44 crore has been made, resulting in recovery of Rs. 18.35 crore. In one such recent detection involving fraudulently availed ITC of Rs. 9.58 crore, a key person has been arrested.

In the Financial Year 2023-24, Gurugram Zonal Unit has unearthed 1,198 fake GSTINs, involving fraudulent ITC detection of Rs. 2,762.30 crore, and have prevented revenue loss to the tune of Rs. 900 crore (approx). In all 6 persons have been arrested in these cases.

CBI ARRESTS TWO SUPERINTENDENTS & THREE INSPECTORS IN BRIBERY OF Rs. SEVEN LAKH AND RECOVERS CASH OF Rs. 83.26 LAKH (APPROX) DURING SEARCHES

The Central Bureau of Investigation has arrested two Superintendents & three Inspectors, all of CGST, Jabalpur in a bribery case of Rs. 7,00,000/-.

CBI has registered a case on complaint against a Superintendent, CGST, Jabalpur (MP) on the allegations of demanding bribe of Rs. 1,00,00,000/- for issuing release order of a factory. It was further alleged that the factory premises were earlier raided and sealed in May-2023 by said Superintendents and other officials of CGST, Jabalpur. After negotiation, the alleged bribe was reduced to Rs. 35,00,000/-.  It has also been alleged that the Complainant handed over Rs. 25,00,000/- to said Superintendent and  requested to give some more time for the remaining amount of Rs. 10,00,000/-. Later, the said accused reduced the bribe to Rs. 7,00,000/- after further negotiation.

CBI laid a trap and caught two Superintendents & three Inspectors while demanding & accepting bribe of Rs. 7,00,000/- from the Complainant. Searches were conducted at 07 locations including at residential & office premises of accused at Jabalpur which led to recovery of cash of Rs. 83,26,800/-  (approx).

All the 05 arrested accused will be produced today in the Court of Special Judge, CBI Cases, Jabalpur.

 In exercise of the powers conferred by Sectbn 5 and Section 14A of the Foreign Trade (Development and Regulation) Act, 1992, as amended, read with Para 1.02 and 2.0 I of the Foreign Trade Policy 2023, as amended from time to time, the Central Government hereby amends Para 10.08(ix) ofthe Foreign Trade Policy, 2023 as under: 

Effect of this Notification : Para I 0.08(ix) of FTP has been amended to provide reference to Para I 0.16 of HBP 2023 for chemicals covered under GAEC. 

In exercise of the powers conferred under Paragraph 1.03 and Paragraph 2.0 I of the Foreign Trade Policy (FTP) 2023, the Director General of Forei&7fl Trade (DGFD hereby makes amendment to Handbook of Procedures (HBP) 2023 amending the paragraph 1 0.16(A) as mentioned below with immediate effect. 

2. A new entry as Para 10.16.A.(II)c.(iv) is added as below :

(iv) Any subsequent transfer/export/re-export under GAEC to the list of applicable countries specified in the Appendix I O(N) is only for civilian end use. 

3. Two new entries as Para 10.16.A.(II)d and 10.16.A.(II)e are added as below: 

d. A declaration is to be submitted by the exporter on Letter Head duly signed and stamped stating that export shall only be done for civilian end use. 

e. A declaration from the Indian exporter stating that that the transfers/exports/re-exports in the entire supply chain would be only for eligible list of countries as provided in Appendix IO(N).

Effect of this Public Notice : Para 10.16(A) of HBP 2023 has been amended to add more chemicals (Appendix I ON) under General Authorisation of Export of Chemicals (GAEC).