New Delhi, Nov 8 (UNI) The Officers of Central Excise, Delhi-I have unearthed a huge evasion of central excise duty running into Rs 21.31 crore by MR Tobacco Pvt Ltd, engaged in the manufacture of Gutkha.
The party was defrauding the revenue department by clandestine manufacture of goods out of the unaccounted raw material procured without payment of duty.
The party had also mis-declared the number of shifts and speed of pouch packing machines with the malafide intention of concealing its earlier as well as ongoing clandestine manufacture and clearance of goods without payment of duty.
Since Gutkha is a sensitive commodity attracting high rate of duty at 67.98 per cent, Central Board of Excise and Customs had issued directive to the Gutkha manufacturers this year to declare number of pouch packing machines, number of shifts and speed of pouch packing machines.
The company's Director was arrested by the Central Excise Officers on November 6 and produced before the Additional Chief Metropolitan Magistrate who has remanded the accused to judicial custody for 14 days.
This is the second major case of detection of Central Excise duty evasion booked against a Gutkha manufacturer in Delhi Central Excise Zone, which has jurisdiction over Delhi and Haryana.