The Directorate of Revenue Intelligence (DRI) has issued a show-cause cum demand notice to telecom major Vodafone and its two subsidiaries for allegedly evading anti-dumping duty of Rs 330 crore.
“We have issued the notice to Vodafone,” confirmed a senior DRI official.
Vodafone imported Synchronisation Digital Hierarchy (SDH) based transmission equipment from China by declaring it as non SDH equipment, for allegedly evading the duty, according DRI.
Anti-dumping duty is levied on distrustfully low-priced imports, so as to protect the domestic manufacturers.
“Customs Act provides for imposition of anti-dumping duty on SDH equipment which originate from China and Israel,” the official added.
The Director General Anti-Dumping initiated action after a local Indian manufacturer Tejas Networks filed a complaint against cheap imports from China and other countries.
Officials said that Vodafone, during the proceedings, opposed levy of anti-dumping duty saying that SDH was critical for telecom sector.
“We have investigated and found out the modus operandi of the duty evasion,” said the official.
Vodafone spokesperson could not be contacted immediately for a comment.