Latest


SC dismisses custom's plea claiming overvaluation in import of capital goods by Adani

  •   Tue, Mar 28 2023 03:42:34 PM

New Delhi, Mar 28 (IANS): The Supreme Court has dismissed the customs department appeal against Adani Power Maharashtra Ltd. (APML), Adani Power Rajasthan Ltd. (APRL) and others in alleged over-valuation of imported goods matter.

A bench comprising Justices Krishna Murari and Sanjay Karol, after hearing detailed arguments in the matter from both sides, dismissed the appeal filed by the customs department against APML, APRL and others.

According to the counsel familiar with the development, the apex court found that the project cost of APML and APRL was either similar or lower than the price of peers/competitors.

The counsel added that the price was lesser than the benchmark per megawatt cost fixed by Central Electricity Regulatory Commission (CERC) and the contract was an EPC contract awarded to the lowest bidder following worldwide bidding called International Competitive Bidding (ICB).

According to the counsel, the apex court upheld the findings of both the lower authorities, i.e., adjudicating authority as well as appellate tribunal and confirmed that there was no overvaluation in import of capital goods. The top court dismissed the custom's appeal on Monday.

APML & APRL following ICB, imported goods required for setting up of thermal power projects in Maharashtra and Rajasthan.

Likewise, consortium led by PMC Projects (India) pvt. ltd., which was awarded the contract following ICB, imported goods for setting up of transmission line and substation package for Maharashtra Eastern Grid Power Transmission Co. Ltd. (MEGPTCL).

The Directorate of Revenue Intelligence (DRI), in May 2014, issued show cause notices (SCNs) to APML, APRL, MEGPTCL and others alleging over-valuation in import of capital goods.

The adjudicating authority of DRI in 2017, the same authority which issued the SCNs after dealing with it in detail, held that all the imports were genuine and concluded that the value declared is correct and is not required to be re-determined. Later, SCNs were dropped.

In 2022, the appellate tribunal dismissed the plea filed by the customs department and confirmed that there was no overvaluation while importing the equipment by Adani.

 
  

Top Stories

Comment on this article

  • mohan prabhu, mangalore/canada

    Tue, Mar 28 2023

    There seems to have been somethning fishy going on here between the exporters and Adani, to reflect the costs of the final projects for which the capital goods were imported. The extras will b charged to the projects. It may be - even likely - that under the counter money was or will be exchanged between the importer, to be paid in the country of export or elsewhere outside India. Cannot trust anyone in this transaction. Unless the DGI&E is vigilant this overvaluation will be swept under the rug. Someone is getting rich; it may be Adani or the "middle men/women"

    DisAgree [1] Agree [20] Reply Report Abuse


Leave a Comment

Title: SC dismisses custom's plea claiming overvaluation in import of capital goods by Adani



You have 2000 characters left.

Disclaimer:

Please write your correct name and email address. Kindly do not post any personal, abusive, defamatory, infringing, obscene, indecent, discriminatory or unlawful or similar comments. Daijiworld.com will not be responsible for any defamatory message posted under this article.

Please note that sending false messages to insult, defame, intimidate, mislead or deceive people or to intentionally cause public disorder is punishable under law. It is obligatory on Daijiworld to provide the IP address and other details of senders of such comments, to the authority concerned upon request.

Hence, sending offensive comments using daijiworld will be purely at your own risk, and in no way will Daijiworld.com be held responsible.

You might also like