A team of the Central Goods and Services Tax (GST) Delhi West Commissionerate busted an illegal manufacturing unit of gutka, pan masala, and other tobacco products in Delhi, seizing goods worth Rs 4 crores. The officials estimated a total GST evasion of more than Rs 830 crores.
The information about the same was shared in a press release on January 2, detailing the materials and products seized from the site.
"On basis of the search at the premise of manufacture, it was found that illegal manufacturing of gutkha/pan masala/tobacco product was going on, evidenced by a godown, machines, raw materials and manufactured products at the premises," the press release said.
The team's search led to a seizure of finished gutkha and raw materials such as chuna, sadakattha, and tobacco leaves from the factory. In addition, 65 labourers were found working at the illegal manufacturing unit, according to the press release.
"The finished product of gutkha is being supplied to various states in India. The searches resulted in the seizure of finished gutkha and raw materials such as chuna, sadakattha, tobacco leaves etc. valued at Rs. 4.14 cr approximately," the press release explained.
The team also arrested an individual for his involvement in the manufacture and supply of these goods, without an invoice while intending to avoid taxation. He was arrested for violating the provisions under Section 132(1)(a) and (h) of the CGST Act, 2017.
The accused was produced before a magistrate and sent to 14 days of judicial custody, said the release.
While the further investigation was ongoing to identify others involved and recover the tax dues, the commissioner said that the total tax dues were expected to be Rs 831.72 crores approximately. The figure was based on evidence gathered from the scene, stocks seized, and confessions.
