The biggest recovery has been made so far in the ongoing raids on the premises of first pan masala trader and then perfume trader. Central Board of Indirect Taxes and Customs (CBIC) Chairman Vivek Johri has shared information about this. He said that the department had received information that business is being done in Trimurti Fragrances without paying bills and taxes. On this basis, raids were conducted at three institutions from where Rs 150 crore cash was recovered. He said that this is the biggest recovery ever in the history of CBIC.
In a conversation with news agency ANI, Johri told that the counting of notes is still going on with perfume trader Piyush Jain. DGGI and Income Tax Department raided the premises of big perfume trader Piyush Jain of Kanpur and Kannauj yesterday morning. There was so much cash filled in the lockers, the counting of which is still going on. In this regard, CBIC Chairman Vivek Johri said that Rs 150 crore cash has been recovered so far. Counting of notes continues. According to the information received from the sources, 13 machines have been called for counting the notes. While 80 new boxes and containers have been ordered to keep the cash.
On specific intelligence, officers of Directorate General of GST Intelligence (DGGI), Ahmedabad with the support of officers of local Central GST initiated search operations in Kanpur on 22.12.2021. The search operations covered the factory premises of M/s Trimurti Fragrance Pvt Ltd, Kanpur, manufacturers of Shikhar brand Pan Masala and Tobacco products and the office/godowns of M/s Ganpati Road Carriers, Transport Nagar, Kanpur, involved in transportation of goods.
The information indicated clandestine supply of goods by the manufacturer without payment of applicable tax. The transporter reportedly used to generate multiple invoices in the name of non-existent firms, all below Rs 50,000/- for one full truck load, to avoid generation of E-way Bills while moving the goods. The transporter was also collecting the sale proceeds of such clandestine supply in cash and handing it over to the manufacturer, after deducting his commission.
The officers initially were able to successfully intercept and seize 4 such trucks outside the factory premises, cleared from the factory without invoices and E-way Bills, which confirmed the contents of intelligence.
In the factory premises, during physical stock taking, shortage of raw materials and finished products was noticed as the finished products had been cleared clandestinely. The authorised signatory of the company has admitted to have cleared the goods without GST.
In the premises of the transporter, M/s Ganpati Road Carriers, more than 200 fake invoices used in the past for transportation of goods without payment of GST have been recovered. The transporter has also admitted that goods were being transported without e-way bills under the cover of fake invoices and also the sale proceeds was being collected in cash, to be handed over to the manufacturer. An amount of Rs 1.01 crores in cash has been seized from the possession of transporter.
Based on the intelligence inputs, the residential premises of partners of M/s Odochem Industries, Kannauj, UP, located at 143, Anandpuri, Kanpur,who were supplying perfumery compound, mostly in cash, to the said company was also searched. It was suspected that the sale proceeds in cash were secreted in the premises.
During the search proceedings at the residential premises, huge amount of cash, wrapped in paper, has been found. The process of counting of cash has been initiated with the help of officials of State Bank of India, Kanpur, which may continue till 24.12.2021, evening. The total amount of cash is expected to be in excess of Rs 150 crores.
The agency proposes to seize the cash under the provisions of section 67 of CGST Act, pending further investigations.
An amount of Rs 3.09 crores has been recovered so far towards tax dues. Necessary follow up action in the ongoing investigation of sensitive nature is being organised.