Acting on specific intelligence the Directorate General of Goods and Service Tax Intelligence, Headquarters (DGGI, Hqrs) has unveiled a racket of clandestine clearance of cigarettes through a factory run in Kota.

Searches were conducted at various places in Kota and Nagaur on 17.07.2020, including the factory, trading firms, godowns, secret offices and residences of beneficiaries. During the search, incriminating documents and electronic devices pertaining to the supply of cigarettes without payment of taxes and duties were recovered. Preliminary investigation in the case has revealed the evasion of tax of more than ₹ 72 crores till now. The data from the seized documents has revealed that the supply of cigarettes was being carrying even during the lockdown period.

One person in this regard has been arrested on 20.07.2020 under the provisions of CGST Act, 2017.

Further investigation, in the case, is still under process.

 

Tax evasion uncovered in clandestine cigarette clearance; searches, seizures and arrest under CGST Act, investigation ongoing Clandestine clearance of cigarettes was detected by DGGI following searches at factory, trading firms, godowns and residences; incriminating documents and electronic devices were seized indicating supply without payment of taxes and duties and preliminary evasion exceeding the stated sum, with supplies occurring during lockdown. One person was arrested under the CGST Act, 2017, and further investigation and forensic examination of seized material are ongoing.