The Department of Revenue Investigation on Wednesday filed cases against six persons at Patan High Court for allegedly dodging revenue amounting to Rs3.82 billion.

The department said in a statement that cases were filed against two persons, including Hari Kumar Shrestha, owner of High-Tech International Pvt Ltd in Sorhakhutte, Kathmandu, for evading revenue amounting to Rs2.42 billion, and four persons, including Mohan Bansal and Govinda Bansal, representing three firms—JSS Mobile and Service Pvt Ltd, Shyam Impex and Shyam Baba Enterprises in Sanepa, Lalitpur—for evading revenue worth Rs 1.39 billion,

“This is one of the largest cases [of revenue misappropriation] ever filed by the department,” said Dirgharaj Mainali, director general at the department.

All the firms facing the charges imported electronic goods, in most cases, without paying the customs duty and other inland taxes.

High-Tech International was involved in importing electronic goods without customs declaration and hiding actual transactions by issuing authorised bills only for a few goods sold and creating a seperate database for actual transactions, according to the department.

According to the department, the company dodged customs duty amounting to Rs1.71 billion, value added tax (VAT) amounting to Rs592.81 million and income tax including capital gain tax amounting to Rs121.43 million.

The three other firms imported electronic goods such as memory cards and pen drives frequently without paying the customs duty and sold them without issuing bills. They also maintained two separate accounts—one showing actual transactions and the other for the sole purpose of presenting to the tax authority to evade tax.

This resulted in the dodging of customs duty amounting to Rs1.01 billion, value added tax amounting to Rs232.46 million and income tax including capital gain tax amounting to Rs48.51 million.

Mainali said they have been continuing such practices for the last six to seven years.
“Some of the electronic items were small in size and had high value, and the importers could avoid screening from the customs offices,” he said without confirming if there had been a collusion with customs officials.

As per the Revenue (Leakage and Control) Act, the department has sought confiscation of the revenue leaked and an equivalent amount in fines, the department said. They are also subjected to serve a maximum jail term of five years, as per the law.