Revenue Directorate seizes cigarettes worth Rs 17 crore from Mumbai

The Directorate of Revenue Intelligence (DRI) has seized smuggled cigarettes worth Rs 17 crore from Navi Mumbai, one of the largest cigarette seizures in recent times. "Based on a specific tip-off received, DRI officials intercepted a 40-feet container from Dubai destined for an ICD (Inland Container Depot) in the early hours of February 5 in a godown in Navi Mumbai. The consignment of foreign origin cigarettes smuggled was in the process of being replaced with the wash basins cargo declared in the Import General Manifest (IGM)," it said in a statement.

The DRI recovered 650 master cartons containing foreign-origin cigarettes from the container and the total market value of the cigarettes seized works out to approximately Rs 17 crore. "The mastermind, an Indian national based out of Cyprus has been apprehended along with three others," it said adding that further investigations are on.

The replacement cargo was also found stored at the godown in the same quantity as that in the IGM. "While the wash basins were marked as 'Made in China', were domestically procured from a shop in Navi Mumbai and that the markings were intended to mislead Customs officials," it said.

Cigarettes provides a lucrative opportunity for tax evasion due to tax arbitrage between the country of exports and in the importing country. The high taxes and duties provide smugglers the opportunity to earn huge profits by engaging in outright smuggling where illegal movement takes place through clandestine channels so as to avoid duties and taxes at the official ports of entry..

(With inputs from agencies.)