The Central Bureau of Investigations have registered cases regarding
duty draw back scandal where hosiery manufacturers of Tirupur and Hosur have
been accused of cheating the government by claiming rebates without exporting
goods from VOC Port Tuticorin.
Eight manufacturers and four companies
claiming duty drawback without any export
In the cases registered by the Madurai unit of the CBI as many as
eight manufacturers and four companies relating to cargo management and freight
operations have been accused of submitting false shipping bills to claim duty
draw back from the customs without making any export.
As export incentive, govt gives a rebate
of about ten per cent on the duty
Under the duty draw back scheme conceived as a export incentive
measure by the government, exporters get a rebate of about ten per cent on the
duty they have paid from the manufacturing stage to till the goods are
exported. This is given when the container leaves the container freight station
or inland container depot to the ship for exports.
According to sources this is the first case when exporters claimed
draw back without sending any export consignment. The earlier practice was to send
garbage and claim draw back treating them as exports.