The Directorate of Revenue Intelligence (DRI) in Gujarat detected around Rs 600 crore of import duty evasion by coal importers by falsely classifying coal in 2012-13.
These coal importers have allegedly evaded duty by reporting bituminous coal imports as steam coal. Earlier, the government waived customs duty on steam coal and imposed only a concessional countervailing duty (CVD) of 1 percent. However, bituminous coal attracted a duty of 5 percent and CVD of 6 per cent.
According to sources from DRI, the body has started recovering tax from all coal importers in the state and over Rs 100 crore has been realised so far.
Throughout the country, coal importers are said to have evaded upto Rs 2,500 crore by falsely classifying coal imports.
The coal imports last year at ports like Tuiticorin, Paradip, Mumbai, New Mangalore Port, amongst other are under scanner.
In the 2013-14 budget, Union Finance Minister P Chidambaram equalised the duty structure on coal in order to discourage this practice.
Since both kinds of coal are used in thermal power stations, there is rampant misclassification, Chidambaram said in his budget speech.