During the month of May 2005, the Directorate General of Central Excise Intelligence booked 30 cases of evasion of Central Excise & Customs involving revenue of Rs. 24.45 crore and 53 evasion cases of Service Tax involving revenue of Rs.33.36 crore. It also recovered Rs. 14.02 crore as voluntary payment of duty during investigations.
A unit at Silvasa was found indulging in large scale evasion of Central Excise duty by under invoicing their finished goods and collecting the remaining part of the sale consideration, over and above the invoice value, in cash from the dealers/customers. In some cases, instead of collecting money in cash, they sold goods at lower prices to the related persons and from these persons to the final customers at higher prices. Further investigations are in progress.
A unit manufacturing plywood and veneers located at Gurnmudipondi, Andhra Pradesh was indulging in under valuation. Searches were conducted on various premises of the company, its dealers and connected offices, with an evidence of clandestine removal and undervaluation was recovered. The unit has paid an amount of Rs. 25 lakhs voluntarily towards evaded duty.
A case has been booked against a Raipur based Export Oriented Unit in Chattisgarh. The unit had not installed the imported capital goods even after eight years of its importation. Duty evasion in this case is estimated to be Rs. 1.5 crore.
A unit located at Shahibabad in Uttar Pradesh was searched for indulging in clandestine clearances. Indian currency amounting to Rs. 1.83 crore was seized during search. Unit has paid duty amounting to more than Rs.1.8 crore during investigation itself. Estimated duty evasion in this case is approx. Rs. 4-5 crore.
A case has been booked against a unit at Ahmedabad in Gujarat, which was engaged in the manufacture of UPS, Inverters etc. The unit had evaded the CE duty of about Rs. 2.5 crore by misusing the SSI exemption benefits and not registering themselves with the Central Excise department.
A case of evasion of huge amount of Service Tax has been booked against a Foreign Firm which has rendered taxable services of ‘Consulting Engineer’ to a large manufacturing organization based at Jamshedpur. Total amount of Service Tax liability has been ascertained at Rs. 4.55 crore. The party has voluntarily deposited Rs. 4.03 crore.
A case of evasion of Service Tax has been booked against a party based at Coimbatore in Tamil Nadu which rendered various services like verification of prospective customers for loans from ABN Amro Bank etc. which falls under the head “Business Auxiliary Services”. Service Tax liability on this party works out to nearly Rs.20 lakhs.
BSC/BY/GN-238/05
(Release ID :9726)