Excise dept seeks FIR against Balaji Sales for evading Rs 30-lakh tax

In the garb of the exemption,the dealer imported yarn worth Rs 6 crore and did not pay any tax on it,on the plea that he was converting yarn into cloth and selling the same as tax-free item.

However,when the firm was inspected by the department officials,it was reportedly found that the dealer did not have any machinery to manufacture cloth and no cloth was found in the premises. It also revealed that the dealer had managed to evade more than Rs 30 lakh tax.

Apprehending similar malpractice by other dealers,Verma has issued directions to all the assistant excise and taxation commissioners of the state to scrutinise the record of all the yarn dealers who had obtained exemption from payment of entry tax. “Wherever there is a possibility of tax evasion,the business premises of those dealers should be inspected,and production and manufacturing capacity should be checked. Thereafter,necessary action as per law be taken to recover the tax due,” Verma said.

He added that a few days back,raids had been conducted at the premises of M Jindal Cotex,Sumit Wool Processors,Rama Krishna Knitters,BBS Hosiery Works and BBS Hosiery Exports,and a few firms were found to be indulging in similar malpractices. He said that strict action will be taken against the defaulters.