MRO-TEK Ltd, the Bangalore-based networking firm, on Thursday paid Rs 1.3 crore (Rs 13 million) to the Commissioner of Customs as the balance amount due for evading customs duty on import of digital modems by its subsidiary, RAD-MRO Manufacturing Ltd.
The defaulting company had earlier paid Rs 40 lakh (Rs 4 million) as the first instalment for customs duty of Rs 1.70 crore (Rs 17 million) evaded by its subsidiary, a joint venture with RAD Data Communications Ltd of Israel.
Directorate of Revenue Intelligence sources told rediff.com that the IT company's three top executives, who were arrested and released on bail by the Economic Offences Court on Wednesday, reported to the DRI's office on Thursday for cross-examination in the evasion cases, including the first offence involving a duty of Rs 6.7 crore (Rs 67 million), early this year.
"In conformity with the bail conditions, MRO-TEK chairman and managing director S Narayanan, director H Nandi, and chief financial officer and company secretary R Ramaswamy were present in our office for further investigations and paying the dues," a DRI official stated.
The three accused will also be reporting to the DRI office daily over the next fortnight to assist the officials in their investigations. "We are issuing a show-cause notice to the company for explaining the complicity of its executives in evading the duty on modem kits and integrated circuits," the official added.
A company statement said the present allegation of DRI for short-payment of customs duty and their claim of Rs 1.70 crore (Rs 17 million) were on RAD-MRO Manufacturing Private Limited, the joint venture company, which was a separate entity, and not MRO-TEK.
As regards MRO-TEK, it however said the DRI had already issued a show cause notice claiming Rs 6.40 crore (Rs 64 million) towards short payment of customs duty on certain imports effected by the company in the "normal course of its business" pertaining to software component in goods imported during April 1998 to March 2000. "This matter is sub judice".
Similar claim for short payment had been made on RAD MRO Manufacturing Private Limited, based on the same grounds of duty on software contained in components so imported, during April 1998 to March 2000, the Bangalore-based company said.
The DRI claim was also based on their findings from some records taken into possession on January 14, 2003, and not on further searches or fresh evidence, it said.
However, the show-cause notice on RAD-MRO is yet to be issued by the DRI.
The financial implication of this matter, even if it devolves, shall not affect the finances and/or the operations of MRO-TEK, the statement added.
