Two company directors held for evasion of Central Excise Duty

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Rajkot, Oct 15 (UNI) Two directors of two different cement companies were arrested by the officers of Central Excise (Preventive), Rajkot on the charge of evasion of Central Excise Duty to the tune of Rs 2.53 crore.

According to an official release, Mansukh Patel (Director of Major Cement Pvt Ltd at Shapar in Rajkot) and Rajan Vadilya (Director of New Kishan Cement Pvt Ltd at Shapar) were nabbed yesterday.

Both were indulging in large scale evasion of Central Excise duty by way of wrong availment of Cenvat Credit and its utilisation by obtaining only the invoices of their raw material, that is Pet Coke, in their companies names whereas the goods were destined to some other manufacturers, who were not availing the Cenvat Credit, the release said.

By adopting this fraudulent method, they were getting more Cenvat Credit than their eligibility and were utilising it for payment of duty on their final product, that is ordinary Portland Cement.

Major Cement Pvt Ltd and New Kishan Cement Pvt Ltd had evaded Central Excise Duty worth about Rs 1.45 crore and about Rs 1.08 crore respectively, aggregating the total evasion of duty to the tune of Rs 2.53 crore, the release added.

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