Lawstreet Journal

Central GST Intelligence Detects Rs 225 Crore Tax Evasion in Pan Masala Racket; Three Arrested in the matter

Lawstreet Journal 15 Jun 2020 10:17pm

Image courtesy: Lawstreet Journal Business Central GST Intelligence Detects Rs 225 Crore Tax Evasion in Pan Masala Racket; Three Arrested in the matter

Central GST Intelligence officers have detected tax evasion of Rs 225 crore after busting illegal pan masala manufacturing units in Indore and arresting three people for engaging in the huge racket. 

The officers of the GST Intelligence Directorate-General (DGGI) and the Revenue Intelligence Directorate (DRI) conducted joint raids between Tuesday, 9th June 2020, and Friday, 12th June 2020, at 16 suspected illegal and undeclared warehouses and residential locations in Indore and Ujjain, an official statement issued Saturday (13th June 2020) said.

It was estimated, based on GST Intelligence Directorate-General DGGI's preliminary investigations, that the accused persons and their associates evaded GST of around Rs 225 crores on the products sold illegally during the period between July 2019 to March 2020.

The cumulative implication of duty in this fraud is estimated at Rs 400 crore, the DGGI statement noted.

Also, during the emerging months (April & May 2020) of the lockdown, the suspects are expected to have resorted to large-scale illegal selling and supply of pan masala/tobacco, the statement recorded, adding that further investigation was pending in this matter.

The statement further clarified that organizers and masterminds also made an unsuccessful attempt to threaten enforcement officials by involving a mob of around 20-30 people during a residential search and later on Thursday, 11th June 2020, and Friday, 12th June 2020, at the factory premises.

However, both attempts to disrupt government function were effectively thwarted by DGGI enforcement officers with timely and professional assistance from Madhya Pradesh Police, who was always a part of the entire search operations, the statement said. 

Three accused persons were arrested… Continue Reading...

Tagged: GST  
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