NEW DELHI: GST authorities have discovered an illegal gutka and tobacco products manufacturing plant in the capital, which they allege had evaded Rs 832 million in levies.
“On (the) basis of the search on the manufacturing premise, it was discovered that gutka / pan masala / tobacco products were being produced illegally, evidenced by a demolition, machines, raw materials and manufactured products on the premises.” Shubhagata Kumar, commissioner of Central GST Delhi West, said in a statement, adding that 65 workers were working at the illegal facility.
So far, a person has been arrested and charged with manufacturing and supplying goods without issuing an invoice and evading taxes. He has been charged under various provisions of the central GST Law and was placed in preventive detention for 14 days on Saturday.
The authorities alleged that gutka was being supplied to various states in India and the searches resulted in the seizure of finished products and raw materials such as chuna, sada kattha, tobacco leaves, among others, valued at 4.1 million rupees.
“Based on the evidence gathered, the stocks seized and the confessional statements recorded, it is estimated that the total tax evasion is approximately 831.7 million rupees. Further investigations are under way,” the statement said.
In recent weeks, the government has tightened the noose around tax evaders, especially those who make false claims using false invoices or by inflating the credit on taxes paid in the manufacturing chain. But detecting an illegal manufacturing facility takes evasion to a different level in an industry that is prone to illegally routing merchandise, without paying tax on the entire product.
“The Delhi Area has been making sustained efforts to control GST evasion, leading to the detection of 4,327 crore in the current financial year and 15 people have been arrested in these matters,” Kumar said.
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