By TIOL News Service

NEW DELHI, APR 18, 2017: TAX evasion in the pan masala & tobacco products sector may be rampant across the country but 'scenting' even the scented zarda warrants trained nose on part of the Revenue. In the latest case the officers of Noida II Central Excise Commissionerate, Greater Noida, have detected a duty evasion of over Rs 57 Crore by an unregistered manufacturer of Pan Masala & Tobacco Products.

Acting on a tip-off, that some persons were engaged in the clandestine manufacture of Pan Masala and Scented Zarda Tobacco at Plot No.48 in Greater Noida without obtaining Central Excise Registration and without payment of Central Excise Duty, the officers of the Central Excise Commissionerate kept an eagle’s eye on the suspect and after extensive surveillance, a team of officers comprising of R. K. Chauhan, Sanjay Arora, M. C. Kharakwal, P. K. Sharma, Balkishan, all Superintendents and Lovely Dubey, Piyush Mishra, Manoj Kumar, all Inspectors, conducted raids on the factory premises and some other suspicious places under the supervision of and monitoring by Amand Shah, Commissioner, under the overall guidance of Mr Devendra Mishra, Chief Commissioner, Customs, Central Excise & Service Tax, Meerut Zone.

The raid revealed that One Manoj Kumar Arora, (chairman of Vrinda group of companies) has been running the following companies.

• Poorva Pan Masala Pvt. Ltd.

• Vrinda Tulsi Mineral Water

• Vrinda Detergent Powder Pvt. Ltd.

• Vrinda Tulsi Tea Pvt. Ltd.

• Bobby Milk

As per the official Press Release, Mr Manoj Kumar Arora, Authorised signatory of M/s Vrinda Tulsi Tea Pvt. Limited (M/s VTTPL) and former Director of pan masala manufacturer M/s Poorvai Pan Masala Pvt. Ltd. (M/s PPMPL) had taken the Plot No. 48, Phase-I , Ecotech-III, Greater Noida on lease. Pan Masala and Scented Zarda Tobacco under the Brand Name of Poorvai (Superpower Pan Masala) and P-1 brand (Zafrani Zarda) was found to be manufactured illegally with the help of six nos. of Pan Masala pouch Packaging machines installed there., The manufactured and packed Pan Masala and Zarda Poches, packing rolls, plastic pouches and tin containers recovered from the raided premises carried the name of M/s Poorvai Pan Masala Pvt Ltd. At Plot No.59, Udyog Kendra-II, Ecotech-III, Greater Noida as manufacturer. Therefore, six pouch packing machines, and finished goods were seized by the Department. Manoj Kumar Arora who was present at the time of search operation allegedly admitted that M/s Poorvai Pan Masala Pvt. Ltd., is also owned by him. He undertook to pay Central Excise duty liability on the goods. Cash of Rs 8.87 lakh was also recovered and seized during the operation.

Since the amount of duty evasion was very huge, the key person Mr Arora was arrested on 16.03.2017 under Section 13 of Central Excise Act, 1944 for his role in evasion. He was produced before the Court of CJM (Economic Offences) at Meerut yesterday who has sent him to 14 days’ judicial custody.