The Central GST Delhi West Commissionerate has unearthed an evasion of GST by way of manufacture and clandestine supply of tobacco products like ‘gutkha’ and ‘pan masala’ without any registration and payment of duty. On a search at the premises of the manufacturer, it was found that illegal manufacturing of ‘gutkha’ and ‘pan masala’ was going on, as evidenced by a godown, machines, raw materials and the manufactured products at the premises. Around 65 labourers were also found working at the illegal factory. The finished product was being supplied to various states in India. The searches resulted in the seizure of finished gutkha and raw materials such as chuna, sada kattha, tobacco leaves etc. valued at ₹4.14 crore approximately.
On the basis of evidence gathered, stocks seized and confessional statements recorded the total duty evasion is estimated to be approximately ₹831.72 crore. Further investigation is ongoing
One person has been arrested in the matter on the basis of his involvement in the manufacture and supply of goods without issue of any invoice with the intention to evade tax, as well as in transporting, removing, depositing, keeping, concealing, supplying, or purchasing any goods in violation of the provisions of Section 132(1)(a) and (h) of CGST Act, 2017, which are cognizable and non-bailable under Section 132(5) being punishable under Section 132(1)(i) of the said Act. The accused has been arrested and was produced before the Metropolitan Magistrate, Patiala House Court on January 2, 2021. He has been sent to 14 days judicial custody. Further investigation is underway to identify the key conspirators of the case and to recover the tax dues involved.
(Published from PIB)