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

The Goods and Services Tax (GST) authority has unearthed evasion of Rs 831.72 crore tax in Delhi after raiding a manufacturing unit that was indulging in clandestine supply of gutkha, pan masala and other tobacco products without paying tax, the finance ministry said on Sunday.

The Central GST Delhi West Commissionerate searched the premise and found illegal manufacturing of gutkha, pan masala and tobacco, it said.

“Around 65 labourers were found working at the illegal factory. The finished product of gutkha is 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 Rs. 4.14 crore approximately,” it said.

Based on the evidence gathered, stocks seized and confessional statements recorded the total duty evasion as estimated to be approximately Rs 831.72 crore, it said, adding that the investigation is in progress.

One person has been arrested in the matter on the based on his involvement in the manufacture and supply of goods without issue of any invoice to evade tax, as well as in transporting, removing, depositing, keeping, concealing, supplying, or purchasing any goods in violation of various laws, which are cognizable and non-bailable offence, it said.

The accused person has been arrested and produced before the Metropolitan Magistrate (MM), Patiala House Court on January 2. He is sent to 14 days judicial custody by the magistrate, it said. “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 Rs 4,327 crore in the current financial year and 15 persons have been arrested in these matters, it said.