CAG indicts Adani group for availing undue tax benefits.

NEW DELHI: In yet another CAG report, the Adani Group has been indicted for availing undue tax benefits to the tune of crores of rupees. The CAG report on Department of Revenue, tabled in Parliament on Friday, has claimed that one of the Adani Group comanies, along with certain other companies, availed of undue export duty exemption to the tune of Rs 13.29 crore.

According to the report, Adani Wilmar was granted the benefits by Ahmedabad customs by way of "incorrect consideration of invalid shipping bills". The report says, under rules, "for availing benefits of Chapter-3 schemes for export from June 1, 2008, exporter is required to make a declaration on free shipping bills that they will be claiming the benefits as admissible under chapter 3 of Foreign Trade Policy

"...The provision for declaration was introduced so as to check the valuation of goods by the customs authority at the time of exportation".

CAG audits revealed that though the shipping bills did not contain declaration of intention of availing chapter-3 benefits, "these shipping bills were considered for granting duty credit resulting in consideration of invalid shipping bills for duty credit of Rs 1329.27 lakh".

Another report tabled in Gujarat Assembly last month, highlighted irregularities amounting to more than Rs 25,000 crore, which included what the CAG says was around Rs 1,500 crore in undue benefits to certain companies, including Reliance Petroleum, Essar Power and the Adani Group.

Another report on partnership firms tabled in Parliament last month said in the financial year ending March, 2013, the Adani Group allegedly availed a benefit of Rs 234 crore by way of tax exemption that it was not entitled to. Curiously the total assessed income of the company for that period was only Rs 6,000. In another case, Adani Exports was allegedly granted a deduction of Rs 179 crore when its total assessed income was only Rs 74,000.

Source : timesofindia.indiatimes.com