GST evasion: Revenue intelligence joins probe against businessman

A team of Directorate of Revenue Intelligence (DRI) officials on Tuesday reached the premises of Kanpur businessman Peeyush Jain in Uttar Pradesh's Kannuj where a raid of the Director General Supplies and Transport (DGST) is still under way.

According to information, the DRI is mulling to file a separate case against Peeyush Jain, and will help GST officials in fixing the overall value of gold recovered during the raid.

"On Monday, 23 kilograms (kg) of gold and 600 kg of sandalwood oil hidden in an underground storage, having a market value of about Rs 6 crore were seized from his office and factory premises. Since the gold recovered is having foreign markings, the DRI was roped in for necessary investigations," a GST official said.

The DRI officials, when contacted, didn't divulge more details. However, they said they will be able to comment once the raid is over.

A six-member team of DRI reached Jain's premises on Tuesday morning. Jain was on Monday remanded to 14-day judicial custody by a special court.

The Ahmedabad unit of Directorate General of GST Intelligence (DGGI) had on December 22 initiated search operations in Kanpur at the factory premises of manufacturers of Shikhar brand pan masala and tobacco products.

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They conducted raids at the office godowns of M/s Ganpati Road Carriers, Transport Nagar, Kanpur, and the residential/factory premises of M/s Odochem Industries, suppliers of perfumery compounds at Kanpur, Kannauj and Mumbai.

Four trucks full of goods without GST papers were intercepted by officials. The actual stock kept at the factory was tallied with the stocks recorded in the books and the GST officials found a shortage of raw materials and finished products.

This further corroborated that the manufacturer was indulging in the clandestine removal of goods with the help of a transporter who used to issue fake invoices. The GST officials have recovered 200 such invoices so far.

The manufacturers of the Shikhar brand of pan masala products admitted that they deposited an amount of Rs 3.09 crore towards their tax liability.

GST officials said that till Tuesday afternoon, the total amount of unaccounted cash recovered and seized was Rs 186.45 crore. This is the biggest ever seizure of cash by the CBIC officials. The documents seized from the premises are under scrutiny, said officials.

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