The Central excise duty evasion amounting to Rs 10 crore was unearthed by Directorate of Central Excise Intelligence on wednesday after conducting raid on two Himachal Pradesh based LPG Cylinder manufacturers for allegedly misusing tax exemption announced by the union government.
The companies, having their manufacturing facilities in Una district of HP, had allegedly claimed 'Area Based Exemption' to the tune of Rs 10 crore by showing 25 per cent expansion in their units during year 2003, a stipulation laid down by union government for claiming tax exemption.
However, the investigation conducted by excise sleuths revealed that actually the companies had not undertaken any expansion programme, said sources.
"They just procured fake bill of machinery from a Ghaziabad based supplier in a bid to show purchase for expansion purposes," said a senior official on the condition of anonymity while adding that the supplier had admitted that he did not supply any machinery to them.
As per finance ministry notification, if any existing manufacturing unit expands itself by 25 per cent after January 7, 2003 then it would be eligible for tax exemption.
The raids were being carried out simultaneously by a team of excise sleuths at Una in HP and Delhi.