Clandestine pan masala and tobacco unit in Medchal-Malkajgiri unearthed
Authorities in Hyderabad have unearthed a clandestine pan masala and tobacco manufacturing unit involved in significant tax evasion. The operation led to the arrest of a key individual and the seizure of machinery and raw materials worth millions.
Why it matters
This highlights the ongoing efforts by tax authorities to curb illegal manufacturing and large-scale tax evasion in the tobacco sector.
The key person of a clandestine pan masala and tobacco manufacturing unit who was arrested on August 21 (Friday), was remanded to 14-day judicial custody on Tuesday, said a statement by the Hyderabad CGST Zone.
The operation revealed an estimated ₹160 crore duty and cess evasion, and uncovered goods worth ₹76 lakh and involved 56 workers. Officials seized 40 undeclared form-fill-seal machines, 5,500 kg of finished stock, raw materials and two vehicles, during the search.
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