AETC Ludhiana- Balaji Sales Corporation imported yarn amounting to over Rs. 6 crores and did not pay any tax; booked

Ludhiana, October 14, 2013: Punjab Excise and Taxation Department has detected some major frauds of tax evasion in import of yarn.
HPS Ghotra, Assistant Excise and Taxation Commissioner (AETC), Ludhiana, on Monday, informed that they have detected the case of Balaji Sales Corporation, adding the said dealer imported yarn amounting to over Rs. 6 crores and did not pay any tax on it, taking the plea that he has converted it into cloth which is tax free. But when the premises of the dealer were inspected it was found that the machines were not functional.
Enquiries reveal that the dealer has sold yarn as such and has duped the State of tax which is approximately Rs. 35 lakh . So, an FIR was lodged, he said.
He added now advance tax is being charged on import of yarn but to avoid the frauds of the “kind mentioned above” it has been decided that before giving the exemption from Advance tax, the premises of the dealers will now be visited personally by the concerned ETO/AETC to check as to whether he actually has the knitting capacity and the machines are in functional order.
The electricity consumption record of the dealer will also be seen to confirm that he is agenuine fabric manufacturer. His past track record showing details of tax free and taxable goods will also be seen. This will not only help in safeguarding the legitimate government revenue but also ensure the level playing field for the hottest traders/manufacturers.
Bhupinder Gupta, AETC, Ludhiana II, informed that till now four applications have been received, out of which three were complete in all respects and after due enquiry the same have been submitted to the DETC for final orders.
Adding, Gupta said the Department is fully alive for the requirements of genuine traders. The departmental officials even worked on the last Saturday and Sunday, which also happened to be auspicious days (Ashtami and Dussehra), so that genuine dealers did not suffer and face any harassment. He also said that it is the duty of the department to stop the dealers from taking any undue advantage by which the State is suffering its legitimate revenue and any dealer with malafide intention is not able to browbeat the department with wrong facts. www.cityairnews.com