Most of the goods are being sold without any bills. On being requested for a bill, the standard answer given by the dealers is “These are Chinese goods. No bill can be given.”

As reported in the Indian Express dated 12 May 2013the Finance Ministry had detected custom duty and service tax evasion of at leastRs 400 Crorebetween January and March 2013. The detection came after the Directorate General of Central Excise Intelligence(DGCEI)and Directorate General of Revenue Intelligence(DRI)- two leading financial intelligence agencies under the Revenue department of the Ministry -tracked over 2300 dubious banking transactions, official sources said. Acting on the intelligence following suspicious Cash Transaction Reports(CTRs), the DRI also detected possible diversion of duty-free imported goods ofRs 400 crore.

It is also learnt that the importers of these foreign goods have resorted to blatant under-invoicing of goods such that only around 30% value of the goods is reflected in the invoice thus depriving the Exchequer of huge amount of Custom Import Duty and Countervailing Duties.It is clear from the above that such importers/dealers/sellers are not only causing huge revenue loss to the Government of India but are also violating the law of the land.

These under-invoiced goods imported through illegal means under-cut the sale of Indian goods (manufactured mostly by SME) in India leading to stagnation of Indian stocks, slower growth and ultimate closure of otherwise healthy manufacturing companies, seriously under-mining the development and growth of Indian Industry as also jobs throughout all states of India, with a cascading effect on the Indian economy.

SMEs employ 30% women, who become empowered by virtue of their employment. Slowing down of industrial growth adversely affects the empowerment of women also.