The Directorate of Revenue Intelligence (DRI), New Delhi, has “customarily” seized plants and equipment installed at Electrosteel Steels Ltd’s (ESL) steel plant at Siyaljori, Bokaro, Jharkhand under the provision of the Customs Act, as part of the investigation being carried on by DRI, the company said in a notice to the BSE.
According to the notice, the reason cited by DRI for seizure is short assessment of Customs duty on import of plants and equipment owing to non-inclusion of the expenses incurred by the company under the design & drawing contracts, into the assessable value of the plants and equipment.
ESL, however, said it denies and disputes the short assessment of Customs duty and prefers to contest the “purported allegations” of DRI in an appropriate judicial forum.
According to the company’s own assessment, the DRI’s “allegation” of under valuation is misplaced and it is worth contesting.
The company said the seizure memo of DRI does not stipulate any embargo on plant operation.
“In other words, the plant will remain operational as usual and normal business activity will continue.
“Only exception is that no seized plant or equipment is allowed to be removed to job worker for repair, recondition, etc, without prior approval of DRI,” the notice said.
The company said the seizure memo of DRI does not stipulate any embargo on plant operation.
“In other words, the plant will remain operational as usual and normal business activity will continue.
“Only exception is that no seized plant or equipment is allowed to be removed to job worker for repair, recondition, etc, without prior approval of DRI,” the notice said.