New Delhi Central GST authorities have detected a tax evasion of over Rs 830 crore by an illegal pan-masala manufacturing unit here and arrested a person for his involvement, according to an official statement.
The firm was evading the payment of Goods and Services Tax (GST) by manufacturing and clandestinely supplying gutkha/pan masala/tobacco products without any registration and payment of duty, it said.
On the basis of the search at the premises of the manufacturer, 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, the office of Commissioner central tax (Delhi West) said in a statement Saturday.
Around 65 labourers were found working at the illegal factory, it said.
The searches resulted in the seizure of finished gutkha and raw materials such as chuna, sada kattha, tobacco leaves etc, valued at Rs. 4.14 cr approximately, the statement said.
On the basis of evidence gathered, stocks seized and confessional statements recorded the total duty evasion is estimated to be approx Rs 831.72 crores. Further investigation is in progress, it said.
The finished product of gutkha was being supplied by the unit to various states, the statement said.
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, it said.
The accused was arrested and produced before the local court here on Saturday that has sent him to 14 days judicial custody, the statement said.
A senior official said the illegal unit was operating from Budh Vihar area here.
As many as 14 gutkha manufacturing machines were found working at the time of search in the building situated at main road and in the main market of Budh Vihar area, he said.
Delhi Zone has been making sustained efforts to check evasion of GST, leading to detection of Rs 4,327 crores in the present financial year and 15 persons have been arrested in these matters, he added. (PTI)
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