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DGCEI books a case for fraudulent availment of Cenvat credit against Bhushan Steel

21 May 2013 Evaluate

The Directorate-General of Central Excise Intelligence (DGCEI) has filed a case for evasion of central excise duty to the tune of about Rs 24 crore against Bhushan Steel. The Central Excise Intelligence officials and revenue department’s official on March 20, 2013 conducted extensive searches at 14 places across five States - Maharashtra, Delhi, UP, Uttarakhand and Rajasthan. Raids were also conducted at the factory and traders’ godowns in Delhi, Aligarh and Agra and transporters’ offices at Udaipur and Haridwar.

After the extensive investigation, it was found that zinc ingots were ‘bought' only on invoices, without the company receiving the goods. The modus operandi adopted was that despite a free-on-receipt memorandum of understanding with Hindustan Zinc, Bhushan Steel arranged own transportation specifically for the Khopoli supplies. It was alleged the entire quantity of zinc, which was transported through a Mewar Transport Company in Udaipur, was diverted to traders based in Delhi, Agra and Aligarh.

After the goods were delivered in the godowns, invoices and receipts were sent to Bhushan Steel’s Sahibabad office and then to their Khopoli factory for receiving Cenvat credit.

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