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3 remanded to custody for tax evasion
March, 14th 2007
The Directorate General of Central Excise Intelligence (DGCEI) has detected a significant evasion of central excise duty and misuse of Cenvat credit scheme by three aluminium extrusion manufacturers headquartered in Hyderabad.

The Hyderabad Regional Unit of the DGCEI has estimated the evasion at around Rs 10 crore. A City Criminal Court's Special Judge for Economic Offences has remanded three persons, Mr P. Bhaskara Rao, Mr Bharat Bhushan Aggarwal and Mr Rahul Aggarwal, to judicial custody for 10 days.

The aluminium companies based in the neighbouring Medak and Ranga Reddy districts had availed Cenvat credit on certain goods that were not received by them and not used in the manufacture of their finished products. They also resorted to clandestine clearance ofaluminium extrusion, the DGCEI said in its report to the court.

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