Rs 831.72 Cr Duty evasion at Guthka unit, CGST Delhi West Commissionerate arrests 1 person

Delhi West Commissionerate of Central Goods and Services Tax (CGST) arrested one person on Sunday for duty evasion of around Rs 831.72 crore from a manufacturing unit that was illegally producing Guthka, pan masala, tobacco products.

"The Central GST Delhi West Commissionerate has unearthed evasion of GST by way of manufacture and clandestine supply of gutkha/pan masala/tobacco products without any registration and payment of duty. On basis of the search at the premise of 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," read a press statement from the Union Ministry of Finance.

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Supply to various states across the country

According to reports, the finished product of gutkha produced illegally at the unit is being supplied to various states in the country and around 65 labourers were found working at the illegal factory. Finished gutkha and raw materials such as chuna, sada kattha, tobacco leaves, etc, were seized after the searches. The seized materials are valued at Rs. 4.14 crore approximately.

The total duty evasion is estimated to be approximately Rs. 831.72 crore, on the basis of evidence gathered, stocks seized and confessional statements recorded.

"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 statement read.

The accused person has been arrested and sent to 14 days judicial custody after being produced before the Metropolitan Magistrate (MM), Patiala House Court on January 2, 2021.

The statement said that further investigation is underway to identify the key conspirator/s of the case and to recover the tax dues involved while adding that the Delhi Zone has been making sustained efforts to check evasion of GST, leading to the detection of Rs 4,327 crore in the current Financial Year and 15 persons have been arrested in these matters.

(with inputs from ANI)

(Image: PTI)

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