Pan masala unit busted for Rs 10-crore tax evasion in Haryana, covert machines seized; one held
A pan masala manufacturing unit in Haryana has been busted by Central GST (CGST) authorities for alleged tax evasion amounting to around Rs.10 crore.
The action was taken following intelligence inputs, leading to raids at multiple locations including Gurgaon and Mewat. During the operation, officials uncovered clandestine manufacturing activities involving pan masala and scented tobacco products without payment of applicable taxes.
Authorities seized significant quantities of raw materials, finished goods, and incriminating documents. They also discovered undeclared machinery, including several packing machines used for illegal production, which were not registered with the department.
Investigations revealed that the entities were operating from undisclosed premises and were not maintaining statutory records related to production and clearance of goods, thereby violating tax laws.
One person has been taken into custody in connection with the case, while further investigation is underway to identify other individuals involved and determine the full extent of tax evasion.
Officials stated that proceedings have been initiated for recovery of dues, imposition of penalties, and further legal action. The crackdown is part of ongoing efforts to curb tax evasion in sectors prone to revenue leakage, particularly the pan masala and tobacco industry.
