A visual from one of the undeclared warehouses in Madhya Pradesh. Photo/ANI
A visual from one of the undeclared warehouses in Madhya Pradesh. Photo/ANI

Raids at tobacco companies' warehouses in MP, Rs 225 cr GST evasion detected

ANI | Updated: Jun 13, 2020 16:29 IST


Bhopal (Madhya Pradesh) [India], June 13 (ANI): The Directorate General of GST Intelligence and Directorate of Revenue Intelligence conducted joint raids at 16 locations of three pan masala and tobacco companies in Madhya Pradesh, in which GST evasions of Rs 225 crores were detected.
"Continuing its crackdown on pan masala/tobacco Goods and Services Tax (GST) evasion prone Sector based in the adversely corona-hit city of Indore in Madhya Pradesh, officers from enforcement Wings of Central Board of Indirect Taxes and Customs (CBIC), DGGI and DRI conducted joint raids at 16 suspected illicit and undeclared warehouses and residential locations in Indore and Ujjain from June 9 to June 12," DGGI said in the statement on Saturday.
Despite the COVID-19 situation in Indore, one of the worst-hit cities, the officers displayed great courage and commitment, it said.
According to the statement, the operations codenamed 'Kark' considering GST (Kar) evasion and implication on public health have also led to a seizure of unaccounted finished goods, raw materials, machines and 10 trucks used for the clandestine manufacture of pan masala or tobacco which was being distributed illicitly in Madhya Pradesh and its neighbouring states.

"This operation has led to the detection of GST evasion based on evidence gathered by DGGI amounting to Rs 225 crore for a period of nine 9 months," the statement said.
"In the raids conducted from June 9 to June 12, three independent groups were found to be involved in large scale clandestine manufacture, undeclared supply and illicit sale of pan masala or tobacco without payment of GST have been covered by the enforcement agencies," it added.
It said that three accused persons were also arrested under Section 69 of the CGST Act, 2017 on June 12. the statement added that the undeclared factory premises with as many as 15 machines installed were also unearthed by the CBIC enforcement teams.
"To avoid detection, the masterminds and organizers of this fraud had floated the partnership/ proprietorship/ HUF firms engaged in manufacturing and trading of Pan Masala and Tobacco owned on papers by three dummy persons," DGGI said.
"Certain masterminds of the fraud and financial beneficiaries have not joined investigations. They have been summoned by the Central GST Intelligence Department for tendering statements under the provisions of Central GST Act, 2017," it said. (ANI)

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