BHOPAL: A week after raids on gutkha factories, EOW registered an FIR against directors of Rajshree, Kamla Pasand and Black Lable Gutkha on Thursday. The last Friday raids by EOW on two gutkha production units have revealed tax evasion to tune of 1800 crore committed during nine months.
EOW director general Sushobhan Banerjee said a case has been registered against directors of Kiypan Pan Product Limited for committing financial irregularities in running gutkha business. A case has been registered under section 120-B, 420 of IPC and section 122 of GST against the directors.
The raids were conducted on two factories on receiving complaints that the gutkha barons had evaded taxes running in crores of rupees. The Commercial Tax department has submitted its report which confirms that the companies committed huge tax evasions, said Banarjee. The teams during the searches at the gutkha manufacturing units did not come across any documents regarding the production quantity, stock register, inward and outgoing file, elaborated the DG.
The production at the factory was in full swing and 13 machines were running when the EOW teams swopped down on factories early Friday, he added.
Discrepancy in production data to evade tax: The company had produced 500,38,56,000 gutkha pouches of Rajshri and Kamla Pasand between April 1,2019 and January 9, 2020. Thirteen machines were engaged in the production. However, the factory management showed making 127,31,45,308 pouches, which was 373,071,0692 less than the actual production. By showing lower production, the company managed to evade paying tax on 373,071,0692 pouches, the entry of which was never shown in the documents. In the state, GST on gutka is 28 per cent and cess 60 per cent and when calculated the total comes to 88 per cent, which the company never paid on the pouches, the entry of which never figured on the papers.
In the second factory, eight machines were pressed in production of tobacco pouches. These machines churn out 1000 pouches in one minute and as per the calculations, during nine-month period probably 311,04,00,000 pouches would have been generated at the factory. However, the company on paper declared production of only 5,32,75,400 pouches, which if actual production is taken into consideration is less by 204,48,92,000 pouches.
In the state, 28 per cent tax is imposed on tobacco, the Cess is 160 per cent and with sub it cumulates to 188 per cent tax. The company evaded tax on 204,48,92,000 pouches which was never shown on the papers.
