Rs 150 cr recovered as CGST raids Shikhar pan Masala manufacturers in Kanpur

The Directorate General of GST on Friday said that they have launched searches in Kanpur following a tip-off against the manufacturers of Shikhar Pan Masala and tobacco products.

A senior official said that the search operations covered the factory premises of Ms Trimurti Fragrance Pvt Ltd, the manufacturers of Shikhar brand Pan Masala and tobacco products and the office, godowns of Ms Ganpati Road Carriers, Transport Nagar, involved in the transportation of the goods.

"They were busy in clandestine supplying goods without making payments of applicable tax.

The transporter reportedly used to generate multiple invoices in the name of non-existent firms, all below Rs 50,000/- for one full truckload, to avoid the generation of E way Bills while moving the goods. The transporter was also collecting the sale proceeds of such clandestine supply in cash and handing it over to the manufacturer, after deducting his commission," said a GST official.

Also Read | Income Tax dept raids premises of two UP businessmen

Based on the information, the GST officers were able to intercept and seize four such trucks outside the factory premises, cleared from the factory without invoices and E-way Bills.

The official said that during physical stock-taking, a shortage of raw materials and finished products was noticed as the finished products had been cleared clandestinely.

During the questioning, the authorised signatory of the company admitted to having cleared the goods without GST.

The official said that at the premises of the transporter, Ms Ganpati Road Carriers, more than 200 fake invoices used in the past for transportation of goods without payment of GST were recovered. The transporter also admitted that goods were being transported without e-way bills under the cover of fake invoices and also the sale proceeds was being collected in cash.

"We have seized Rs 1.1 crores from the possession of transporter," the official said.

Later, the GST official conducted searches on the premises of partners of Ms Odochem Industries, who were supplying perfumery compound, mostly in cash, to the said company.

During the search proceedings at the residential premises, a huge amount of cash, wrapped in papers were found.

"We had to call officials of Bank of India to count the cash. The total amount till the counting was around 150 crore. The whole amount will be seized," the official said, adding that further probe was on.

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