Pan Masala Unit Busted Near Hyderabad, Rs 160-Crore Tax Evasion Detected
Authorities in Hyderabad busted an illegal pan masala and tobacco manufacturing unit, uncovering a tax evasion scheme worth Rs 160 crore. The operation involved the seizure of machinery, raw materials, and finished goods, leading to the arrest of the unit's manager.
Why it matters
This highlights the scale of illicit manufacturing and tax evasion in the tobacco sector, impacting government revenue and regulatory compliance.
Officers of the Hyderabad CGST Zone have busted a clandestine pan masala and tobacco manufacturing unit operating out of a tin-shed facility on the outskirts of the city, detecting duty and cess evasion of Rs 160 crore. Acting on specific intelligence, a search operation was conducted at the premises on Thursday and 40 undeclared FFS (Form-Fill-Seal) packing machines were discovered. Around 56 workers were found engaged on the shop floor at the time of the search. The unit was found manufacturing and packing several branded and unbranded products of pan masala and scented jarda.The operation resulted in the seizure of a large quantity of finished stock of pouches weighing around 5,500 kg and ready-to-dispatch consignments valued at Rs 76 lakh, along with raw material comprising approximately 2,015 kg of pan masala mixture and 810 kg of tobacco, besides two vehicles used for transporting the illicit goods.
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