In a major operation, the Gujarat State Tax and Commercial Tax department has unearthed tax evasion of Rs 33.65 crore during state-wide checks at 50 petrol pumps, officials said on Tuesday.
The checks revealed that VAT registration of a number of petrol pumps had been cancelled, but they were continuing their businesses and evading tax.
"VAT registration of 15 out of the 50 petrol pumps searched was found to be cancelled. The preliminary inquiry shows tax evasion of Rs 33.65 crore," the Gujarat State Tax and Commercial Tax department said in a statement. The checks were based on information about potential tax evasion, according to officials.
The department said that it had obtained details of sales made by oil marketing companies to the petrol pumps to ascertain if the outlets had paid the required tax or not.
The statement further said that the process to attach assets and bank accounts of petrol pump owners found involved in tax evasion has been initiated. "Strict action will be taken against those who fail to pay the tax amount," the department warned the evaders.
In Ahmedabad city, Om Petroleum at Pirana, Maniar Auto Centre in Danilimda, and Shrinathji Petroleum, were among the 50 petrol outlets searched. At least three outlets in Ahmedabad rural were also covered in the search. Fuel outlets in Vadodara, Gandhidham, Porbandar, Bhavnagar, Amreli, Surat, Kheda, and other places were also covered in the operation.