Archive · 23 Aug 2026
Hyderabad CGST Busts Pan Masala Unit Over Rs 160 Crore
Tax officers found a hidden factory near Hyderabad making pan masala and tobacco products.
Officials said the factory was operating without registration.
It had 40 packing machines and about 56 workers.
Officers seized about 5,500 kilograms of finished pouches.
They also found products ready to be sent out worth Rs 76 lakh.
Raw materials, vehicles, machines and documents were seized.
Officials said the goods were cleared without paying required taxes and duties.
A person accused of managing the operation was arrested and sent to judicial custody for 14 days.
Authorities estimated the unpaid taxes and cess at about Rs 160 crore.
Hyderabad CGST officers uncovered an unregistered pan masala and tobacco unit in Medchal-Malkajgiri district.
The facility contained 40 undeclared Form-Fill-Seal machines and employed around 56 workers.
Officials seized about 5,500 kilograms of finished pouches and consignments valued at Rs 76 lakh.
Seized materials included pan masala mixture, tobacco, vehicles, packing materials, machinery and documents.
Authorities estimated GST, HSNS Cess and Central Excise duty evasion at about Rs 160 crore; the alleged organiser was remanded to 14 days’ judicial custody.
- Who
- The Hyderabad Central Goods and Services Tax Zone, workers at the facility and the person officials identified as organising and managing it.
- What
- Officials uncovered a clandestine pan masala and tobacco manufacturing unit and detected approximately Rs 160 crore in duty and cess evasion.
- When
- The search was conducted on August 20, and the alleged organiser was arrested on August 21.
- Where
- A tin-shed premises in Medchal-Malkajgiri district on the outskirts of Hyderabad.
- Why
- Officials said they acted on specific intelligence about clandestine manufacturing and the clearance of goods without applicable taxes and duties.
- Estimated evasion
- Approximately Rs 160 crore in GST, HSNS Cess and Central Excise duty
- Packing machinery
- 40 undeclared Form-Fill-Seal machines
- Workers
- Around 56 workers were found on the shop floor
- Finished stock
- Approximately 5,500 kilograms of finished pouches
- Ready consignments
- Goods valued at about Rs 76 lakh
- Raw materials
- Approximately 2,015 kilograms of pan masala mixture and 810 kilograms of tobacco
- Legal status
- The alleged organiser was remanded to 14 days’ judicial custody
