The UT Excise and Taxation Department is in the process of verifying the registration certificates (RC) of those who bought their vehicles from a Chevrolet dealership in Industrial Area to determine whether the RCs were procured on fake documents. The verification is being done as part of the investigations in a tax evasion case involving the dealership.
The Excise Department had conducted a raid on Padam Motors in Industrial Area Phase I on June 21 and seized around 351 cars including 187 Chevrolet vehicles and 164 Renault vehicles. Officials also recovered a computer hard disk and certain documents. They are now scrutinizing the documents.
The department is conducting investigations and the records are being scrutinized. Around 900 cases are being investigated to find out the anomalies. We are verifying the registration certificates of the people who purchased the vehicles to ascertain whether these were registered on fake documents, said UT Deputy Commissioner Mohammed Shayin.
The officials of the department had claimed that there was likely evasion of sales tax by the dealer. Investigation is being conducted on whether form 20 and 21 that was given to the customers was fake. The form is to be generated by the manufacturer. Officials state that in this case they are investigating if it was generated by the dealer. For this,the registration certificates are being scrutinized.
The Excise Department had conducted the raid after receiving a tip off about tax evasion in Punjab.
During the raid here,it was found that the documentation was not adequate. The dealership had not maintained bill books.
There were no documents about the sale of cars. Further investigation is now being conducted.