The Directorate General of Goods and Service Tax Intelligence (DGGI) unit of Ahmedabad on Wednesdsay arrested the owner of a pan masala manufacturer for allegedly evading tax to the tune of Rs 95 crore.
A raid by DGGI Ahmedabad on several units having business dealings with Karamchand brand of pan masala, in Gujarat and Uttar Pradesh, revealed that the firm was engaged in “illicit manufacturing and supply of pan masala and zarda of Karamchand brand from its manufacturing units without payment of GST”, stated a statement from DGGI Ahmedabad additional director general, Vivek Prasad.
The proprietor of the firm Basant Makhija, who had allegedly masterminded the evasion, was arrested on December 9 and remanded to judicial custody until December 22.
As per the DGGI Ahmedabad, their modus operandi included manufacturing their brand of pan masala and supplying chewing tobacco with it (zarda) in a four-to-one ratio, while not paying the applicable GST and cess on the two products.
From January 2019 to November 2020, the total amount estimated to have been evaded, inclusive of GST and cess, stands at Rs 94.54 crore.
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