Coal Scam: DRI Seeks Recusal Of Tribunal Judge


Coal Scam: DRI Seeks Recusal Of Tribunal Judge

In a rare instance, Directorate of Revenue Intelligence investigating the Rs 29,000 crore coal import scam involving several companies has filed an application before the Customs, Central Excise and Service Tax Tribunal seeking recusal of a member hearing the appeal filed by one of the companies.
The application filed last week says that the outcome of the case will be affected if the member C J Mathew continues to be a judge in the matter. The application said , “It is humbly submitted that revenue firmly believes that this will pave the way for an impartial hearing and judgment in the present case.” Mathew did not respond to the calls and text messages.

In December 2014, DRI had unearthed a scam involving companies inflating the value of coal imports from Indonesia for their power plants thus siphoning money abroad. The modus operandi adopted by the companies is that while coal imports would directly be shipped from Indonesia, the invoices will be routed through an intermediary based either in Hong Kong, Singapore or Dubai. The inflated amount will be sent to the intermediary who, in turn, would remit the actual value to the Indonesian supplier. The overvalued component would be diverted to tax havens, DRI had alleged. Read More…

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