Mumbai, Apr 3: The Mumbai Customs has attached the properties of Bollywood producer Bharat Shah and his partner in a diamond export unit after they failed to cough up about Rs 30 crore as duty, penalty and interest amount in a 13-year-old duty evasion case.
The attached properties include Shah's flat at Swapnalok building, Malabar Hill area, his office in The Plaza, Hughes Road area, partner Suken Mehta's flat at Sterling Apartment on Peddar Road in South Mumbai and their factory in SEEPZ at suburban Andheri, said a senior Customs official.
“The jewel firm paid Rs 5 crore sometime back. We are yet to receive about Rs 30 crore, which includes duty, fine, penalty and interest amount. If the duo does not pay up, their attached properties would be auctioned as per procedure,” the official added.
The case, involving alleged irregularities import and export of diamonds, dates back to February 2000 when a survey by officers of Customs had discovered that BV Jewels was not maintaining proper records and accounts resulting in detection of cut and polished diamonds without payment of duty.
Following a detailed inquiry, the Customs had issued a notice, which was challenged by the company before a Customs Excise and Service Tax Appellate Tribunal (CESTAT).
The firm was granted relief by the Tribunal following which the Customs authorities moved the Supreme Court in 2003. In 2004, the Supreme Court remanded the case back to the Tribunal to work out the details on allegations by the Customs.
fter reviewing the case, the CESTAT ruled in favour of the department and imposed a duty of Rs 12.31 crore and a penalty of an equivalent amount on the firm, prompting the firm to challenge it in Bombay High Court. In December 2006, the HC upheld the Tribunal order.
The firm moved SC, which directed B V Jewels to pay the dues in five instalments. Shah is a noted Bollywood film financier who produced films like ‘Devdas' ‘Dil Se' and ‘Rascals' among others.
