City Reports

GST evasion of Rs 40 crore found; company director, accountant arrested

The raids were carried out at the factory after the commissionerate received complaints about tax evasion. The officials however had not expected embezzlement to such an extent and decided to take a strict action against the company, sources said.

January 21, 2019, 9:21 am

arrest

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Jaipur: Central Goods and Service Tax (CGST) commissionerate detected a GST evasion of Rs 40 crore by a company in Bhiwadi industrial area of Alwar district in Rajasthan. The raids were carried out at the factory after the commissionerate received complaints about tax evasion. The officials however had not expected embezzlement to such an extent and decided to take a strict action against the company, sources said. A director and an accountant were arrested for GST theft. The raids were carried out at LEEL Elections Limited in Bhiwadi, according to reports in vernacular dailies. After the officials allegedly detected a GST evasion of nearly Rs 40 crore, the director  – identified as Mukut Bihari Sharma and accountant Soban Singh Bhandari were arrested. They were brought to Jaipur and produced in a court here. The court remanded them in judicial custody. The company manufactures heat exchangers. Earlier in June, 2017, Central Excise commissionerate had arrested a businessman for alleged tax evasion of Rs 21 crore in Bhiwadi. The company had claimed in tax documents that it was selling metal bricks, but during a physical inspection of the factory by central excise officials, no such material was found.

First published: January 21, 2019