1 week ago
DGGI Uncovers Pan Masala Network, Detects Rs 185 Crore Evasion
Officials from the Directorate General of GST Intelligence searched six places in Uttar Pradesh.
They said the places were being used to make pan masala, tobacco products and gutkha without declaring the operations.
The searches found 27 machines used to pack these products.
Officials also found more than 1.5 million finished pouches.
They seized tobacco, areca nut, packaging materials and other ingredients.
The government says the businesses may have avoided paying about Rs 185 crore in taxes and duties.
The proprietor of the manufacturing firm was arrested on August 19.
A court sent him to judicial custody.
Officials said the investigation is still continuing.
The DGGI searched six premises across Chitrakoot and Banda in Uttar Pradesh on August 18.
Officials found 27 undeclared pouch-packing machines for pan masala, scented jarda and gutkha products.
Authorities seized 1,550,922 finished-product pouches and large quantities of raw and packaging materials.
Tax evasion involving GST, HSNS Cess and Central Excise duty was estimated at about Rs 185 crore.
The manufacturing firm’s proprietor was arrested on August 19 and remanded to judicial custody, while the investigation continues.
- Who
- The Directorate General of GST Intelligence, the Ministry of Finance and the proprietor of the manufacturing firm.
- What
- Officials uncovered an alleged clandestine pan masala, scented jarda and gutkha manufacturing and clearance network and detected about Rs 185 crore in tax and duty evasion.
- Where
- Six premises in Chitrakoot and Banda districts of Uttar Pradesh; the arrested proprietor was produced before a court in Lucknow.
- When
- Searches began around midnight on August 18; the proprietor was arrested on August 19. The year was not specified.
- Why
- The DGGI acted on specific intelligence suggesting that goods were being manufactured and cleared from unregistered premises without payment of applicable taxes, cess and duties.
Key facts
- Investigating agency
- Directorate General of GST Intelligence, Lucknow Zonal Unit
- Search locations
- Six premises in Chitrakoot and Banda districts, Uttar Pradesh
- Finished products seized
- 1,550,922 pouches of pan masala, chewing tobacco, scented jarda and sugandhit supari
- Packing machinery found
- 27 undeclared machines: six for scented jarda, nine for pan masala and 12 for dohara/desi gutkha
- Materials seized
- 32.9 metric tonnes of areca nut and cut areca nut, 2.8 metric tonnes of tobacco and 8.4 metric tonnes of packaging material, pouches and laminates
- Estimated evasion
- About Rs 185 crore in GST, HSNS Cess and Central Excise duty
- Legal action
- The manufacturing firm’s proprietor was arrested on August 19 and remanded to judicial custody
Sources
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