On the basis of specific intelligence regarding evasion of GST, simultaneous search operations were conducted by the officers of DGGI, Nashik Regional Unit of DGGI, Nagpur Zonal Unit at the Principal Place of Business and the Additional Places of Business of a prominent Unmanufactured Tobacco Manufacturer of Jalgaon, Maharashtra on 14th/15th July, 2020.
Scrutiny of the documents unearthed during the searches has revealed that the Taxpayer was clearing large quantities of Unmanufactured Tobacco from its Principal Place of Business to its Additional Places of Business without payment of GST, by reflecting such clearances as Stock Transfers. However, no Delivery Challans were issued by the Taxpayer and regular Tax Invoices with Nil rate of GST accompanied such clearances, which were subsequently reflected in the GSTR 3Bs as exempted clearances.
The investigations so far have revealed evasion of GST of app. Rs 1.75 Crore on the clandestine clearances of Unmanufactured Tobacco, out of which Rs. 50 Lakhs has been paid by the Taxpayer on the spot. The quantum of clandestine clearances is expected to increase substantially as the scrutiny of the seized documents is still underway.
