Major Detections and Recoveries

 The imported items has been classified under CTH 87149290 and BCD @ 0% has been paid as per
Sl.No.1487 of Notfn.No.46/2011, import under PTA between India and ASEAN rules, 2009.However,
the subject imported items are rightly classifiable under CTH 87141090 and hence attract BCD @
15%.Detection and recovery of Rs 6.5 crores

 The items exported self declared as "paroxetine and donepezil hydrochloride" have been classified
under CTH 29333990 and 29339900 and claimed MEIS benefit vide Notification No. 24-Cus dated
08.04.2015. However, it was found out during audit that an excess amount of MEIS incentive have been
availed by way of mis-classification mostly under CTH 29333990 and 29339900 instead of correct
classification under CTH 29333920 and claimed higher rate of MEIS @ 3% of FOB value instead of @
2% as per the provisions of FTP 2015-2020. Detection and recovery of Rs 3.04crores
 The items imported self declared as “DIAGNOSTIC REAGENTS” have been classified under CTH
38220090 and BCD @10% by availing benefit under Sl. No. 249A of Notification No. 50/2017, SWS
@ 10%and IGST @ 12% have been paid for the said goods. However, the itemsself declared as
“DIAGNOSTIC REAGENTS”in the annexure are not used for Diagnostic purpose and are cleaning
agents. So the items arecorrectly classifiable under CTH 28289090/29053200/30029030/
34021300/34022090/38249900as the case may be and are liable payable to pay BCD @10%, SWS
@10% and IGST @18%. Detection and recovery of Rs1.2 crores.

 The items imported self declared as "LINE CARD" have been classified under CTH 85176290 and paid
BCD @10% by availing Notification benefit under Customs Notification No. 57/2017 Sl. No. 20.
However, Line Card is an modular electronic circuit designed to fit on a separate interface with a
telecommunications access network and considered as an Optical Transport Network (OTN) products and
they are not eligible for the said Notification benefit. Hence, the imported items attract BCD @20% and
thereby resulted in differential duty. Detection and recovery of Rs72 lakhs.
 The imported items are classified under CTH 84733099 and paid BCD @0% by availing notification
benefit of Notfn. No. 024/2005 Sl.No. 10 and IGST @18% vide Notfn. 01/2017-IT(Rate) dt. 01.07.2017
Sch.III Sl.No.362. However, as the imported items are not parts of Automatic Data Processing machines,
but are machines having individual functions, invertor, monitioring& indicatin units etc., they are
classifiable under CTH 85437099, 85044090 & 90314900 and attracts BCD @7.5% & 15% and IGST
@18% vide Notfn. 01/2017-IT(Rate) dt. 01.07.2017 Sch.III Sl.No.393. Recovery of Rs.1.78/- crores.

 The items self declared as “VITAL WHEAT GLUTEN” have been classified under CTH 11090000.
BCD exemption has been availed under DFIA Scheme against Import Item Sl.No.1 of DFIA Licence
Nos.0910067980/6.9.2019 and 0910068320/1.1.2020. However, the goods eligible for exemption
benefit against Import Item Sl.No.1 of the said Licences is WHEAT FLOUR falling under CTH
11010000 and not VITAL WHEAT GLUTEN. As per Condition Sheet to the said Licences and as per
Customs Notification No.19/2015 dated 1.4.2015, only those goods mentioned in the said DFIA
Licences are allowed for import and are eligible for the Licence benefit. Hence, VITAL WHEAT
GLUTEN imported vide the subject 2 Bills of Entry are not eligible for the DFIA benefit and duty is
to be paid under merits. Detection and recovery of Rs72 lakhs.
 Detection of undue/excess MEIS in the export of textile items by misclassifing under 6307
instead of other relevant sub-headings has led to recovery in excess of Rs. 6/- crores.