The Gujarat Commercial Tax department officials have cracked the whip on around 20 steel and iron sheet and plate manufactures in Ahmedabad who are suspected of evading taxes. A team of 100 officials raided 29 premises, 16 manufacturing units and 11 warehouses in Odhav and Kanbha areas late Tuesday evening. The raids continued till late on Wednesday evening.
The manufacturers were raided after officials suspected large-scale Value Added Tax (VAT) evasion. While sheets and plates attract only five per cent duty, other building and construction material, like cement and marble attract duties of around 15 per cent.
"Our analysis found that among building and construction material manufacturers, iron and steel sheet and plate manufacturers contributed the least tax. It didn't reflect the same growth as other manufacturers," said a senior official. They have also found goods belonging to MNCs from the 11 warehouses that have been raided and suspect that the correct taxes have not been paid on these.
"We plan to continue the operation in a phased manner and will raid other manufacturers as well give the extent of evasion," said an official.