Three persons remanded to judicial custody
Rs. 80 lakh CENVAT credit availed on goods that were not inputs 1,000 mt extrusions valued at Rs. 10-cr. cleared
HYDERABAD: The regional unit of the Directorate General of Central Excise Intelligence here has detected huge tax evasion by two companies dealing in aluminium products.
The amount of evasion involved was estimated to be about Rs. 9 crore and three persons, Pelluru Bhaskara Rao, Bharat Bhushan Agarwal and Rahul Agarwal, had been remanded to judicial custody by the Special Judge for Economic Offences, City Criminal Court, Nampally, in this connection.
Officials of the Hyderabad regional unit of the Central Excise Intelligence, over a period, gathered information on how illegal methods were adopted by the accused representing two Hyderabad-Rangareddy-based aluminium companies to avail CENVAT credit on certain goods not received by them.
It was contended that companies had not used any of the goods earmarked in the records as used in manufacture of their finished products and clandestinely cleared aluminium extrusions.
It was submitted to the court that one of the companies cleared 1,000 metric tonnes of aluminium extrusions valued at about Rs.10 crore to another company whose registered office is in Secunderabad, between September 2002 to August 2005 and it involved a duty evasion of Rs.1.60 crore.
CENVAT credit was also availed to the tune of Rs. 80 lakh on aluminium wire rods and aluminium sheets and coils (costing Rs.5 crore) that were not inputs.