GST authority in Delhi nabs one for ₹831 crore tax evasion

The Goods and Services Tax (GST) authority has arrested one person in the city for evading over ₹831 crore in taxes after a search of a manufacturing unit unearthed

The Goods and Services Tax (GST) authority has arrested one person in the city for evading over ₹831 crore in taxes after a search of a manufacturing unit unearthed the illegal production of gutkha, pan masala and other tobacco products without paying tax, the finance ministry said on Sunday.

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The search was conducted by the Central GST Delhi West Commissionerate, the ministry said.

“Around 65 labourers were found working at the illegal factory. The finished product was being supplied to various states in India. The searches resulted in seizure of finished gutkha and raw materials such as chuna, sada kattha, tobacco leaves and others valued at ₹4.14 crore approximately,” the ministry said.

The total duty evasion has been estimated at approximately ₹831.72 crore, it said, adding that the investigation is in underway.

One person has been arrested for 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 various laws that are cognisable and non-bailable offences, it said

The accused person was arrested and produced before the metropolitan magistrate (MM) of Patiala House court on January 2, and 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,” it added.

Delhi Zone has been making sustained efforts to check evasion of GST, leading to detection of ₹4,327 crore in the current financial year and 15 persons have been arrested in these matters, it said.