GST team raids pan masala factories of Kamla Pasand co for tax evasion
Lucknow: Factories of KP Group of Companies, which makes Kamla Pasand and Rajshree pan masalas, were searched by a central GST team on March 14 and 15 for alleged tax evasion.
The raids, sources said, were carried out in two factories in Sahibabad and Bulandshahr industrial areas. GST evasion worth Rs 1.8 crore have come to the fore as of now, the sources added.
Sleuths are looking for the company’s directors and senior managers, said DD Mangal, additional commissioner (central GST). “In Jan, our team raided a transport office in Sahibabad and found products of three companies, including KP Group, that were unaccounted for. The total worth of these products was Rs 8 crore,” Mangal said.
While two of the companies paid duty for the seized products, KP Group evaded calls for clearing taxes, according to the commissioner.
“KP Group hasn’t been cooperating with us at all. Over the past two months, our teams were keeping a watch on the movement of goods from KP factories in Sahibabad and Bulandshahr. We acted on a tip-off and raided the two factories last week. Huge quantities of pan masala that were not mentioned in the records were seized,” Mangal said.
“As of now, GST evasion worth Rs 1.8 crore has come to our notice. The figure is expected to increase as the investigation progresses. In the meantime, we are looking for the directors and senior officials of the company,” he added.
A source in the department said there was a gross mismatch between actual production and that mentioned in company records. “The evasion was done at multiple levels. For instance, many consignments of pan masala made their way out of the factory without any bills whatsoever. Trucks that made multiple trips with the products used the same e-way bill, thereby evading taxes,” a source said.
During the raids last week, two such trucks stacked with flavoured pan masala worth Rs 30 lakh were ready to leave the factory premises. “The drivers tried to flee when they saw the GST team, but were caught. The directors of the company are unreachable. We have seized some crucial documents and laptops of employees. They are being checked” an official who was part of the raids
