The Central GST authorities have detected a tax evasion of over Rs 830 crore by an illegal pan masala manufacturing unit and arrested a person in that regard. The firm was evading the payment of goods and services tax (GST) by manufacturing and clandestinely supplying gutkha/ pan masala /tobacco products without any registration and payment of duty. “On the basis of the search on the premises of the manufacturer, it was found that illegal manufacturing of gutkha/pan masala/tobacco products was going on, evidenced by a godown, machines, raw material and manufactured products at the premises,” the office of Commissioner Central Tax (Delhi West) said in a statement. Around 65 labourers were found working at the illegal factory, it said.
The searches resulted in the seizure of finished products and raw material valued around Rs 4.14 crore, the statement said. “On the basis of evidence gathered, stocks seized and confessional statements recorded, the total duty evasion is estimated to be around Rs 831.72 crore. Further investigation is in progress,” it said. The gutkha manufactured in the unit was being supplied in various states, the statement said. One person has been arrested for his involvement in the manufacture and supply of goods without issuing any invoice, it said. The accused was arrested and produced in a local court on Saturday, which remanded him in 14-day judicial custody. A senior official said the illegal unit was operating from Budh Vihar area. Fourteen gutkha manufacturing machines were found working at the time of search in the unit. Further investigation is going on to find the main conspirator and for the payment of tax dues.