New Delhi, Aug 21 (IANS) The Directorate General of GST Intelligence (DGGI) has uncovered a clandestine manufacturing operation involving pan masala, scented jarda and gutkha across six premises in Uttar Pradesh’s Chitrakoot and Banda districts, according to an official statement on Friday.
According to the Ministry of Finance, acting on specific intelligence, officers of the DGGI’s Lucknow Zonal Unit launched coordinated searches around midnight on August 18 at premises linked to two firms, one engaged in the manufacture of pan masala and allied products and the other involved in trading activities.
During the searches, officials detected 27 undeclared pouch-packing machines, including six machines used for scented jarda, nine for pan masala and 12 for dohara/desi gutkha, the ministry said, adding that mixing, areca nut crushing and drying machines were also found at the premises.
In addition, authorities seized 1,550,922 pouches of finished products, including pan masala, chewing tobacco, scented jarda and sugandhit supari.
Raw materials and packaging materials seized included 32.9 metric tonnes of areca nut and cut areca nut, 2.8 metric tonnes of tobacco, 8.4 metric tonnes of packaging material, pouches and laminates, 470 kg of katha powder, 850 kg of glycerine, 545 kg of essence and 256 kg of unpacked pan masala.
According to the ministry, evasion of Goods and Services Tax (GST), Health Security and National Security (HSNS) Cess and Central Excise duty amounting to about Rs 185 crore has been detected so far.
Preliminary evidence suggests the operation was being run through a network of unregistered premises using undeclared machinery, with goods allegedly cleared without payment of applicable taxes, cess and duties, it said.
Moreover, the proprietor of the manufacturing firm was found prima facie to be responsible for organising and managing the clandestine manufacturing and clearance activities and was arrested on August 19 under provisions of the HSNS Cess Act, 2025, and the Central Excise Act, 1944, and produced before the Special Chief Judicial Magistrate (Customs), Lucknow, who remanded him to judicial custody. The investigation is continuing and further recoveries are expected, officials said.
–IANS
ag/
