The Supreme Court directed the Central Government to file counter affidavit in a plea filed by lawyer ML Sharma seeking directions to the CBI to register an FIR and probe the alleged duty evasion by 61 companies in allegedly 'smuggling' of iron ore to China.
A Division Bench of Chief Justice NV Ramana and Justice Surya Kant heard the sensational Writ Petition WP(s) (Crl) No(s).334 /2020, U/Art. 32 & 21 of the constitution of India and u/s 135 of the Custom Act, COFEPOSA-74, U/s 11 of the Foreign Trade (development & regulation) Act 1992 r.w. 420 & 120 -B, 107 of IPC & PC Act 1988. Earlier in January , the SC had sought response of the Centre and the iron exporting companies in the PIL filed by Sharma. The PIL had sought directions that the companies who were allegedly prosecuted for allegedly evading export duty by declaring wrong tariff code to export the iron ore under the Foreign Trade (Development and Regulation) Act, 1992 be prosecuted. The plea had also sought directions to CBI to investigate the matter and register FIR against the companies.The petitioner alleged that iron ore smuggling to China has been taking place since 2015 as these companies have been exporting them without paying 30 per cent export duty. Several private companies have been smuggling millions tons of iron ore pellets to China contrary to FDRA-92 declaring/using Tariff HS Code 26011210 instead of 26011100 and evading 30per cent export duties since 2015 till date. Export of iron ore is restricted under Tariff HS Code 260111. To evade 30per cent Export duty accused persons exported ore using Tariff HS Code 26011210 which is duty free HS Code, exclusively provided for KIOCL. It’s an offence of smuggling u/s 2(39) of Custom Act attract COFEPOSA and sec. 11 foreign Act, which warrants recovery of penalty 5 times of the value of exported goods.
Sharma prayed for issue of appropriate writ of mandamus to CBI to register an FIR under relevant laws to arrest all accused persons and to investigate impugned concocted conspiracy of smuggling , duty evasions in violation of export policy, under the supervision of SIT framed by court and to file their report before court in time bound manner for further action, direction, and prosecution. Jana Adhikari Parisada president Bijay Parida has in a letter urged Union Government to immediately initiate a CBI inquiry to expose the mega scam.
