The Director was arrested under the provisions of the Central GST (Representation) Act, 2017
Bhopal:
GST intelligence officials detected more than 17 crore in tax evasion by a major cement maker in Satna and arrested one of its directors, according to an official statement released Wednesday.
They also carried out multiple searches in the states of Madhya Pradesh and Uttar Pradesh from August 5 to 11 at various premises owned by the cement manufacturer located in Maihar, Satna and their registered dealers and distributors, he said. declared.
“Research indicated that significant quantities of cement and clinker were smuggled without payment of the Goods and Services Tax (GST) in the states of MP and UP,” said the statement issued by the Directorate General of Intelligence on GST (DGGI), unit Bhopal area.
The research was carried out in Maihar, Satna, Allahabad, Kushinagar, Agra, Kanpur and New Delhi. In all, 28 searches were carried out during the week-long operation, he said.
During the factory search on Saturday, the team of DGGI officials were surrounded by a crowd of people who threatened and interfered with official procedures, the statement said.
“Immediate assistance from Madhya Pradesh police was requested, which was provided spontaneously. A subsequent operation was carried out under the security blanket provided by Madhya Pradesh police,” he said.
During the operation, it was revealed that more than four lakh tonnes of limestone was purchased in addition to what was declared in the official company records during the period January to July 2020, according to the press release.
By removing the purchase of limestone, the company appears to have manufactured cement and clinker which was smuggled into various dealers and units in Madhya Pradesh and Uttar Pradesh without payment of GST, he said. .
“In this process, according to preliminary estimates, around Rs 15.1 crore of GST is believed to have been evaded during the seven-month period from January to July 2020,” the DGGI said.
More than 12 bags of lakh cement were found to be out of stock compared to official records kept by the company, he said, adding that these are also believed to have been smuggled without payment of GST .
DGGI officials also retrieved private records of cash transactions from company officials, revealing unrecorded cash credit of over Rs 7.5 crore for a few months of 2018, the statement said.
The GST’s implication on these transactions is estimated to be around Rs 2.1 crore, he said, adding that unaccounted for money of 52.39 lakh was also recovered by central officials of the TPS during searches.
In view of the serious offenses committed and the evidence gathered, two executives of the company were identified as the organizer and financial beneficiary of this case of GST fraud.
“One of the directors was arrested on August 12, 2020 under the provisions of the central GST law of 2017,” the statement said.
Another director did not join the investigations despite being summoned three times, he said.
“He produced a medical opinion regarding the symptoms of COVID-19. However, he has now fled and is found by officials,” the DGGI said.
The director had previously been convicted of violating India’s penal code in the Delhi District Court’s 2017 coal block allocation case, he said, without giving further details.
“Given the situation induced by COVID-19, all officials followed government guidelines on social distancing and wore gloves, masks and other protective gear,” the statement added.
(Except for the title, this story was not edited by GalacticGaming staff and is posted from a syndicated feed.)
