2 businessmen held for mis-declaring chemicals, evading huge duty

MUMBAI: The Directorate of Revenue Intelligence (DRI) arrested two chemical traders for allegedly evading customs duty by mis-declaring dutiable chemicals imported from China.

Officials said the traders suppressed crucial information, including the country of origin and the Bill of Lading, to avoid paying duties amounting to over Rs 10 crore and Rs 12 crore, respectively. Those arrested have been identified as Ankit Mehta, Director of Chemkart India, and Maulik Kothari, partner of M/s Aphrodite Foods LLP.According to the DRI, specific intelligence revealed that Chemkart India, based in Santacruz (East), was importing Instantized Branched Chain Amino Acid (BCAA), Instantized L-Leucine Powder, Instantized L-Isoleucine Powder, and Valine Powder since December 2021 from Chinese suppliers.

The agency found that Chemkart India allegedly evaded Rs 10.85 crore in customs duty, while Kothari’s firm is accused of evading Rs12 crore.

These products fall under CTI 21069099, which attracts a total customs duty of 82.9%. DRI officials placed the consignments on hold and sent samples for testing. Investigations revealed that the accused allegedly conspired with Chinese suppliers to alter the Customs Tariff Heading (CTH) and mis-declare the nature of the goods. Searches at the offices of Mehta and Kothari led to the recovery of communications showing that they instructed suppliers to remove the term “Instant/Instantized” from invoices and labels, despite knowing the goods were instantized preparations falling under the higher-duty CTH.

Officials said chats and emails with Chinese suppliers confirmed the manipulation.