Officials of GST from Coimbatore have unearthed tax evasion by a paper unit in Pollachi.
Coimbatore: Officials of GST from Coimbatore have unearthed tax evasion by a paper unit in Pollachi. In a statement from the Central GST Commissionerate of Coimbatore, the units have been functioning even after cancellation of their registration and have been clandestinely clearing goods, without payment of appropriate tax.
The statement further said that based on the intelligence and discreet enquiries, on October 13, 2020 a search operation was conducted on the premises of a Kraft Paper manufacturing unit located at Ayyampalayam, Pollachi.
During the raid, the officials found various incriminating documents to prove that the units are manufacturing and clearing the kraft paper, clandestinely, even after cancellation of their registrations with effect from April 30, 2020.
Further investigations unearthed that they have another unit running in the same premises and incriminating documents recovered revealed that they receive the entire goods cleared from the manufacturing unit, whose registration has been cancelled.
The second unit is indulged in dispatch of kraft paper received from the first unit to various buyers by splitting the sales value to avoid E-way bill declaration. The second unit had also not filed their statutory returns declaring the taxable value for the supplies made.
The manufacturing unit is a partnership firm and the second unit is a private limited company. However, both the units are managed by a single person. The accounts of both units are handled by a single accountant who had admitted to the offence in his statement recorded on the spot.
The tax evaded by the manufacturing unit amounts to Rs.1.70 Crores and the tax evaded by the second unit amounts to one crore approximately.
Further, the Managing Partner of the first unit and the Managing Director of the private limited company is the same person, who had indulged in evasion of tax had admitted to the offence committed in his statement recorded on the spot.
Further investigation against units whose registration has been cancelled and still indulge in clandestine supply, is under progress, as per the press statement by A. Govindaraj, Deputy Commisaioner, Central GST - Tax evasion, Coimbatore.
Anti-evasion officers headed by N.George Francis, Superintendent assisted by J.Marshal, Superintendent, Karthik Thiagarajan and Piyush Kumar, Inspectors of Coimbatore GST Commissionerate were part of the investigating team.
The statement further said that based on the intelligence and discreet enquiries, on October 13, 2020 a search operation was conducted on the premises of a Kraft Paper manufacturing unit located at Ayyampalayam, Pollachi.
During the raid, the officials found various incriminating documents to prove that the units are manufacturing and clearing the kraft paper, clandestinely, even after cancellation of their registrations with effect from April 30, 2020.
Further investigations unearthed that they have another unit running in the same premises and incriminating documents recovered revealed that they receive the entire goods cleared from the manufacturing unit, whose registration has been cancelled.
The second unit is indulged in dispatch of kraft paper received from the first unit to various buyers by splitting the sales value to avoid E-way bill declaration. The second unit had also not filed their statutory returns declaring the taxable value for the supplies made.
The manufacturing unit is a partnership firm and the second unit is a private limited company. However, both the units are managed by a single person. The accounts of both units are handled by a single accountant who had admitted to the offence in his statement recorded on the spot.
The tax evaded by the manufacturing unit amounts to Rs.1.70 Crores and the tax evaded by the second unit amounts to one crore approximately.
Further, the Managing Partner of the first unit and the Managing Director of the private limited company is the same person, who had indulged in evasion of tax had admitted to the offence committed in his statement recorded on the spot.
Further investigation against units whose registration has been cancelled and still indulge in clandestine supply, is under progress, as per the press statement by A. Govindaraj, Deputy Commisaioner, Central GST - Tax evasion, Coimbatore.
Anti-evasion officers headed by N.George Francis, Superintendent assisted by J.Marshal, Superintendent, Karthik Thiagarajan and Piyush Kumar, Inspectors of Coimbatore GST Commissionerate were part of the investigating team.