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GST arm unearths Rs 832 Cr tax evasion by illegal ‘pan masala’ factory

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New Delhi, Jan 3, 2021-
The Central GST Delhi West Commissionerate has unearthed evasion of taxes worth around Rs 831.72 crore by way of manufacture and illegal supply of ‘pan masala’ without any registration and payment of duty.

The GST officials also arrested one person in the matter.

An official statement said that on the basis of the search at the premises of the manufacture, it was found that illegal manufacturing of ‘gutkha/pan masala’/tobacco product was going on, evidenced by a godown, machines, raw materials and manufactured products at the premises.

Around 65 labourers were found working at the illegal factory. The finished product of gutkha was being supplied to various states in India. The searches resulted in seizure of finished gutkha and raw materials such as ‘chuna, sada katha’, tobacco leaves and valued at around Rs 4.14 crore.

“On the basis of evidence gathered, stocks seized and confessional statements recorded the total duty evasion is estimated to be approximately Rs 831.72 crore,” said the Finance Ministry statement.

The accused person has been arrested and produced before the Metropolitan Magistrate (MM), Patiala House Court on January 2 and has been sent to 14-day judicial custody. Further investigation was underway to identify the key conspirator/s of the case and to recover the tax dues involved.

As per the ministry, the Delhi zone has been making sustained efforts to check evasion of GST, leading to detection of Rs 4,327 crore in the current financial year and arrest of 15 persons in these matters. (Agency)

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