Faridabad trader held for evading Rs 1-cr sales tax
September, 08th 2011
A Faridabad-based businessman and owner of a manufacturing unit of earthmovers and excavators was apprehended by the Central Excise department's anti-evasion wing on Wednesday for sales tax evasion worth Rs 1 crore. Umesh Soni, the owner of Hytech Earthmoving Engineers in Sector 31, was later produced in a city court which sent him to a 14-day judicial custody.
The company was found not registered with the Central Excise department and that's how Soni escaped paying any duties.
Soni was also charged with not carrying "unaccounted sale" in cash worth Rs 3.75 crore for selling his manufactured products. The officials recovered the cash during a raid at his house. Unaccounted manufactured goods worth Rs 1.05 crore were also seized.
In an official statement, the officials said they have unearthed the "most incriminating documents/records from the factory premises in the form of ledgers, revealing transactions of clandestine clearances to various firms". It was also found that the unit carried out packing/re-packing of manufactured goods, which were sold at prices determined under the Central Excise Act, 1944, without paying any sales tax.
According to the statement issued, "As per the provision of the Act, manufacture includes any process which (in relation to the goods) involves packing or re-packing in a unit container including the declaration or alteration of retail sale price on it or adoption of any other treatment on the goods to render the product marketable to the consumer."
The norm was clearly violated by the owner by not making declarations as per the provisions.During interrogation, Soni admitted that his firm was engaged in the manufacturing process between 2003 and 2009 and that goods bought out from local market or imported by them were packed in suitable packages with their logo but without making retail sale price on them, said an official.