Hyderabad CGST busts illegal pan masala unit; Rs 160 crore tax evasion detected
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New Delhi, Aug 22 : The Hyderabad CGST Zone has unearthed a clandestine pan masala and tobacco manufacturing unit in Telangana's Medchal-Malkajgiri district and detected duty and cess evasion of about Rs 160 crore and arrested a key accused, an official statement said on Saturday.
Acting on specific intelligence, CGST officers conducted a search at a tin-shed premises, leading to the discovery of an unregistered manufacturing facility engaged in the production and packing of pan masala and scented jarda.
In addition, officials detected 40 undeclared Form-Fill-Seal (FFS) packing machines being used for packaging tobacco products during the operation.
Nearly 56 workers were found engaged in manufacturing activities at the premises.
The unit was producing and packing multiple branded as well as unbranded varieties of pan masala and scented jarda, the statement said.
The search resulted in the seizure of finished stock weighing about 5,500 kg and ready-to-dispatch consignments valued at approximately Rs 76 lakh.
Officials also seized around 2,015 kg of pan masala mixture, 810 kg of tobacco, packing materials, 40 FFS machines, two vehicles allegedly used for transporting illicit goods and other incriminating documents.
Moreover, preliminary investigations revealed that the unit was operating without registration and clearing finished goods without payment of applicable GST, Health Security and National Security (HSNS) Cess, and Central Excise duty.
Additionally, the person allegedly responsible for organising and managing the clandestine manufacturing and clearance operations was arrested on August 21. He was subsequently produced before the Special Judge for Economic Offences in Hyderabad, who remanded him to judicial custody for 14 days.
Based on physical stock verification, installed machinery, workforce strength and statements recorded during the investigation, officials estimated the total duty and cess evasion at around Rs 160 crore.
Earlier in August, the Directorate General of GST Intelligence (DGGI) uncovered a clandestine manufacturing operation involving pan masala, scented jarda and gutkha across six premises in Uttar Pradesh's Chitrakoot and Banda districts.
DGGI's Lucknow Zonal Unit officials detected 27 undeclared pouch-packing machines, including six machines used for scented jarda, nine for pan masala and 12 for dohara/desi gutkha, the ministry said, adding that mixing, areca nut crushing and drying machines were also found at the premises.
Acting on specific intelligence, CGST officers conducted a search at a tin-shed premises, leading to the discovery of an unregistered manufacturing facility engaged in the production and packing of pan masala and scented jarda.
In addition, officials detected 40 undeclared Form-Fill-Seal (FFS) packing machines being used for packaging tobacco products during the operation.
Nearly 56 workers were found engaged in manufacturing activities at the premises.
The unit was producing and packing multiple branded as well as unbranded varieties of pan masala and scented jarda, the statement said.
The search resulted in the seizure of finished stock weighing about 5,500 kg and ready-to-dispatch consignments valued at approximately Rs 76 lakh.
Officials also seized around 2,015 kg of pan masala mixture, 810 kg of tobacco, packing materials, 40 FFS machines, two vehicles allegedly used for transporting illicit goods and other incriminating documents.
Moreover, preliminary investigations revealed that the unit was operating without registration and clearing finished goods without payment of applicable GST, Health Security and National Security (HSNS) Cess, and Central Excise duty.
Additionally, the person allegedly responsible for organising and managing the clandestine manufacturing and clearance operations was arrested on August 21. He was subsequently produced before the Special Judge for Economic Offences in Hyderabad, who remanded him to judicial custody for 14 days.
Based on physical stock verification, installed machinery, workforce strength and statements recorded during the investigation, officials estimated the total duty and cess evasion at around Rs 160 crore.
Earlier in August, the Directorate General of GST Intelligence (DGGI) uncovered a clandestine manufacturing operation involving pan masala, scented jarda and gutkha across six premises in Uttar Pradesh's Chitrakoot and Banda districts.
DGGI's Lucknow Zonal Unit officials detected 27 undeclared pouch-packing machines, including six machines used for scented jarda, nine for pan masala and 12 for dohara/desi gutkha, the ministry said, adding that mixing, areca nut crushing and drying machines were also found at the premises.
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