DGGI books case against Unregistered Pan Masala/Gutkha manufacturing unit

DGGI- Case - Taxscan

Acting on specific intelligence the Directorate General of Goods and Service Tax Intelligence, Headquarters (DGGI, Hqrs) has unveiled an unregistered Pan Masala/Guthka factory, being run in Delhi.

Searches were conducted at various places on 25.06.2020, including the unregistered factory, godowns, and residence of the main beneficiary. During the search, incriminating documents and electronic devices pertaining to the supply of Pan Masala/guthka without payment of taxes and duties were recovered. A preliminary investigation in the case has revealed the evasion of more than Rs. 40crore till now.  Manufacturing, storing, sale, and distribution of guthka is banned by Govt. of Delhi. The data from the seized documents revealed that the unregistered factory was carrying out the operation even during the lockdown period.

The main beneficiary of the unregistered Pan Masala/Gutkha factory has been arrested on 27.06.2020 under the provisions of the CGST Act, 2017. He was placed under judicial custody of 14 days.

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

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