The Directorate of Revenue Intelligence (DRI) has issued a show-cause-cum-demand notice to Vodafone and its two subsidiaries for evasion of anti-dumping duty worth Rs 3.30 billion. According to DRI, the telecom operator had imported synchronisation digital hierarchy (SDH)-based transmission equipment from China. The company declared the import as non-SDH equipment and evaded the potential duty.
It has added that the Customs Act provides for the imposition of anti-dumping duty on SDH equipment imported from China and Israel.
The Anti-Dumping section of the revenue department initiated the process of legal action after Tejas Networks filed a complaint against such imports from China and other countries. After investigations, the department has found the modus operandi of the duty evasion on Vodafone.
