Bangalore: A day after its three top executives were arrested for alleged evasion of customs duty, IT product firm MRO-TEK on June 26 said show-cause notice was yet to be issued by the Directorate of Revenue Intelligence on its joint venture company, RAD-MRO Manufacturing Pvt Limited, on DRI's claim for short payment of Rs 1.70 crore in customs duty.

"When received, due action shall be initiated as provided under the Law," MRO-TEK said in a statement following the arrest by DRI of company chairman S Narayanan, managing director H Nandi and chief financial officer R Ramaswamy who were later released on bail.

It said the present allegation of DRI for short-payment of customs duty and their claim of Rs 1.70 crore were on RAD-MRO Manufacturing Private Limited, the joint venture company which was a separate entity, and not MRO-TEK.

As regards MRO-TEK, it however said that the DRI had already issued a show-cause notice claiming Rs 6.40 crore towards short payment of customs duty on certain imports effected by the company in the "normal course of its business" pertaining to software component in goods imported during April 1998 to March 2000. "This matter is sub judice."

Similar claim for short-payment had been made on RAD-MRO Manufacturing Private Limited, based on the same grounds of duty on software contained in components so imported, during April 1998 to March 2000, the city-based company said.

The DRI claim was also based on their findings from same records taken possession of on January 14, 2003, and not on any further searches or fresh evidence, it said.

PTI