The Directorate General of Central Excise Intelligence (DGCEI) has claimed that it has been able to recover excise duties of over Rs 20 crore in its search operations on several pharmaceuticals, tobacco and export-oriented units in the first three months of the current fiscal year.
In a release issued today, the directorate said it had been able to book these spectacular cases of huge amounts of duty evasion and also exposed several new modus operandi of the tax evaders. In 2002-03 the DGCEI has booked cases involving evasion of over Rs 2,550 crore.
It says its search operations on Vishnu and Co which manufactures Vimal brand of Panmasala showed that the company had apparently produced goods without paying excise and removed them to transporters or goods shed of railway stations for onward despatch. Based on the searches the company has paid a duty of Rs 5 crore.
Investigation on Nestor Pharmaceuticals showed that the company was allegedly charging sales tax and central sales tax from state governments over and above the contract price, but it was paying no Central excise on the sum earned.
It showed the sum as freight in the excise invoices and replaced the same with commercial invoices at the point of delivery to the buyers.
The company supplies to health departments of various state governments.
