Central GST authorities have detected a tax evasion of more than 830 million rupees by an illegal pan-masala manufacturing unit here and arrested one person for his involvement, according to an official statement. The company was evading payment of goods and services tax (GST) by clandestinely manufacturing and supplying gutkha / pan masala / tobacco products without any registration and payment of duties, he said.
Based on the search at the manufacturer’s premises, it was found that the illegal manufacture of gutkha / pan masala / tobacco products was taking place, evidenced by a demolition, machines, raw materials and manufactured products at the premises, the The central tax commissioner’s office (Delhi West) said in a statement on Saturday. About 65 workers were found working at the illegal factory, he said. The searches resulted in the seizure of finished gutkha and raw materials such as chuna, sada kattha, tobacco leaves, etc., valued at Rs. Approximately 4.14 cr, the statement said.
Based on the evidence gathered, the stocks seized and the confessional statements recorded, the total evasion of duties is estimated to be approximately Rs 831.72 million. More investigations are underway, he said. The unit supplied the finished gutkha product to various states, according to the statement. A person has been arrested in the matter for his participation in the manufacture and supply of goods without issuing any invoice with the intention of evading taxes, as well as in the transport, withdrawal, deposit, custody, concealment, supply or purchase of any product, said.
The defendant was arrested and presented to the local court here on Saturday which sent him to 14 days of judicial custody, according to the statement. A senior official said the illegal unit operated from the Budh Vihar area here. As many as 14 gutkha-making machines were found working at the time of the search in the building located on the main road and in the main market in the Budh Vihar area, he said.
The Delhi Zone has been making sustained efforts to control GST evasion, which has led to the detection of 4,327 crore rupees in the current financial year and 15 people have been arrested in these matters, he added.
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