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Customs ask DPC to clarify shifting of critical components

The Customs department, suspecting massive duty evasion, has asked Dhabol Power Company of beleaguered Enron, to furnish details of critical imported components allegedly shifted from its plant.

DPC had reportedly shifted some critical components from its 2,814 MW Guhagar plant to a 'secured' location 'to prevent vandalism and pilferage at its 1,700 acre site'.

Customs Comissioner, S D Majumdar said on Tuesday that in a letter to the managing director of DPC, K Wade Cline on January 14 this month, it has sought clarification within five days.

Customs has stated that the imported equipment were extended a concessional rate of duty on condition that these would be used for setting up the project at Dabhol.

Therefore, if certain portion of the equipment are shifted from the site, they no longer are entitled to concession and attract heavy duty, Majumdar said.

The Customs has also informed that contravention of section 111 (0) of Customs Act could result in confiscation of the goods. Moreover, penalty provisions contained in section 112 of the Customs Act could also attract penalty provisions.

Meanwhile, DPC has stated that they were "in the process of formulating a comprehensive response to the factual and legal questions raised. We shall be submitting a comprehensive response to your queries," he added.

On January 21, DPC had informed Bombay high court that the code CDs and e-chips of its idle power plant were in India and it was ready to hand over the critical components to IDBI led Indian financial institutions.

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