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Central Excise books tax evasion cases of over Rs 25 crore

Last Updated: Friday, February 22, 2013 - 21:12

New Delhi: Central Excise has booked cases against three entities for tax evasion of over Rs 25 crore for misusing cenvat credit facilities.

"Directorate General of Central Excise Intelligence (DGCEI) Delhi recently booked cases against Progressive Alloys India Pvt Ltd, Delhi, a registered dealer and copper wire manufacturers Malhotra Cable Pvt Ltd, Delhi and Kopertek Metals Pvt Ltd, Bhiwadi for tax evasion of over Rs 25 Crore by misusing Cenvat Credit facilities," an official statement said Friday.

It said during search operations carried out at various premises, officers of the Directorate detained unaccounted copper scrap valued at Rs 1.7 crore from undeclared godown.

The officers also seized cash of Rs 1.05 crore from the secret office and secret godown of Progressive Alloys.

The statement also said various documents recovered during the search revealed fake invoices adopted by Progressive Alloys director Amit Gupta.

"He (Gupta) was operating /running five companies (Central Excise Registered Dealers) and procuring the materials (metals like copper, zinc, tin, nickel) under the Central Excise duty paid invoices from domestic market and under the custom duty paying documents i.E. Bill of entry on import of metals," it added.

Also, Gupta sold the materials in the market in cash without any bill, it said.

Central excise/countervailing duty paid on the goods was passed on as cenvat credit to manufacturers such as Malhotra Cables and Kopertek Metals and others who received the invoices issued by the dealers without supply of goods, the statement said further.


First Published: Friday, February 22, 2013 - 21:12
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