This is the second arrest in the case wherein the duty liability on the seized goods is Rs 11.63 crore, a Customs official said on Saturday
Representational Pic/File
The Special Intelligence and Investigation Branch (SIIB) officials at Jawaharlal Nehru Custom House, Nhava Sheva, have made one more arrest in connection with the seizure of 189.6 tonnes of areca nut, valued at Rs 9.65 crore, smuggled under the guise of bitumen, reported the PTI.
This is the second arrest in the case wherein the duty liability on the seized goods is Rs 11.63 crore, a Customs official said on Saturday.
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According to the official, the goods were seized following several summons and searches, leading to the arrest of one of the directors of the Importer Exporter Code (IEC) holder.
In continuation of this investigation, customs have now arrested Mukesh Bhanushali from Ghatkopar in Mumbai, allegedly the beneficial owner of the areca nut smuggled from the United Arab Emirates (UAE) into India.
Multiple investigations are ongoing at various ports, including Mundra. The other director involved is currently absconding, the official said.
Areca nut attracts a high tariff value and a duty structure of 110 per cent, plus Integrated Goods and Services Tax (IGST), to protect Indian producers of areca nuts. To avoid these charges, unscrupulous importers resort to mis-declaration during illicit imports.
Despite India being the largest producer of areca nuts in the world, there is rampant smuggling of areca nuts to supply the illegal gutka industry in the country, the official added.
"Based on a suspicious scan noticed by alert officers of the Container Scanning Division (CSD), nine containers were put on hold and a detailed examination was conducted. It was discovered that areca nuts worth Rs 9.65 crore were clandestinely concealed behind bitumen drums," a statement issued by the Jawaharlal Nehru Custom House had earlier said, reported PTI.
The modus operandi unearthed involved packing of areca nut in wooden pallets wrapped in black plastic to camouflage them and make them appear as bitumen drums, the statement said, reported PTI.
"Areca nut attracts high tariff value and duty structure of 110 per cent plus Integrated Goods and Services Tax (IGST) so as to protect its Indian producers. In avoid to pay this, unscrupulous importers resort to mis-declaration during illicit imports of areca nuts. The duty sought to be evaded in this case was approximately Rs 11.63 crore," it added, reported PTI.
(with PTI inputs)
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