Bhiwadi factory evades crores of rupees in excise duty
‘A factory with a turnover of crores of rupees’: the phrase conjures up an image of rumbling machines and the hubbub of hundreds of workers. In Bhiwadi, Alwar district, however, there is a factory that has neither machines nor workers, yet has crores of rupees worth of transactions and over Rs 20 crore in evaded tax.
The Anti-Evasion division of the Central Excise Department had received a tip-off that crores of rupees of tax had been evaded by the Metal Alloys Industry, located on plot number G-1-855 of the Chopanki Riico Industrial Area in the Alwar district, and owned by Delhi-based Mohit Gupta.
When preliminary inquiries confirmed the tip-off, officials raided the unit. They found very little material there and no documents to account for whatever material was there. During their investigations, officials found out about sales and purchases worth crores conducted in the unit on the basis of false bills. It was also found that Metal Alloys had purchased raw material from three suppliers located in Bawal and Sonipat in Haryana. But officials were subsequently unable to locate two of these suppliers. They investigated further, and found that one of the suppliers was Amit Gupta, who was the brother of Metal …read more