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During the month of June 2005, the Directorate General of Central Excise Intelligence (DGCEI) booked 41 cases of evasion of Central Excise and Service Tax involving an amount of Rs.83.40 [26 cases of Central Excise involving revenue of Rs.68.88 crores and 15 cases of Service Tax involving revenue of Rs. 14.52 Crores]. DGCEI also recovered an amount of Rs. l1.92 crores as voluntary payment of duty during investigation. During the month, concerted action was taken against units manufacturing Khaini/Pan Masala.
(I) A group manufacturing branded Khaini having factories at Delhi & 24 North Pargana was searched which resulted in recovery of various incriminating documents evidencing evasion of Central Excise duty amounting to more than Rs.15 crores. Party has voluntarily deposited Rs.5 crores and for another Rs.5 Crores, they have given cheque payable in August 2005.
(II) A unit located in Rajasthan manufacturing branded Gutkha at different locations was found to be evading Central Excise duty by clandestinely clearing their finished goods. Various incriminating documents and cash of Rs.67 lakhs were recovered during search. Total evasion is estimated to be more than Rs. 25 crores. Arrests might follow. The concerned persons are absconding.
(III) Units based at Ludhiana manufacturing auto parts were indulging in suppressing the actual quantity of their clearances and also undervaluing the same. Searches were conducted on various premises of the units including their residential premises. Incriminating documents indicating huge evasion of Central Excise duty have been recovered. Party has deposited Rs.62.40 lakhs towards payment of Central Excise duty.
(IV) Units manufacturing plywood, Block boards & Veneers were searched by DGCEI for suspected undervaluation. Searches were conducted on various premises of the Companies, their dealers and connected offices. Incriminating documents and unaccounted cash amounting to Rs. 6 lakhs were recovered. Central Excise duty so evaded is estimated to be around Rs.8 crores. Investigations are under progress.
(V) A unit based at Santej in Gujarat engaged in the manufacture of Aluminum conductors, wire rods/Electric conductor machinery etc. was indulging in clandestine clearances of finished goods and availing Cenvat Credit on the invoices without physical receipt of inputs. Simultaneous searches on various premises led to recovery of incriminating documents which confirmed the intelligence. Estimated duty evasion in the case is Rs. 3 Crores out of which assessee has voluntarily deposited Rs.21.87 Iakhs.
(VI) A Company located in Kolkata and Siliguri providing general security and information services was investigated for non payment of Service Tax. The documents recovered established non-payment of service tax falling under the service tax category of security services. On being pointed out party voluntarily deposited an amount of Rs.17 lakhs by three postdated cheques. Further investigations are in progress.
BSC/BY/GN-257/05
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