SNK Panmasala owner arrested for GST evasion of Rs 5 crore

Kanpur, Ta. 11

DGGI, Meerut team has arrested SNK Pan Masala owner Naveen Kurel and director Avinash Modi. This major action has been taken after an investigation that lasted for 3 hours. The case is linked to GST evasion of Rs 3 crore. Others have also been arrested in the case. The arrest has been made under Section 12 (1) of the GST Act. This is the first arrest of a major businessman in the city since the GST was introduced.

The big industrialists are frightened by Article 12 of the GST because it is under this section that the power to arrest GST officials is given. The arrests of Pan Masala bigwigs Naveen Kurel and Avinash Modi have been made in violation of the law. He is accused of selling goods worth Rs 3 crore without a bill.

The Meerut commissioner's team has filed a case under section 16 (1). If the GST Commissioner has a reason to prove that the industrialist has committed an offense of tax evasion as specified in sub-sections A, B, C and D of section 19, then the GST Commissioner may order arrest in special cases where the amount of tax evasion exceeds Rs. 2 crore. Is.

Most of the raw materials are supplied by Pan Masala manufacturing companies across the country through a company called Uflex. When the plastic packing material (foil) supplied by Uflex was compared with the ledger accounts of Pan Masala companies, there was a huge gap between input and output. This means that the supply of packing material was increased by UFlex while the pan masala companies showed less of this material. Calculating this distance, the GST officials found the amount of theft. The arrest has been made under section 13 (1) which means that the goods were sold without a bill. Cash credit was taken. The goods were sold in cash only.

The arrest of SNK brand owners has spread fear among pan masala traders across the country. The movement of SNK owner Naveen Kurel and director Avinash Modi has been under the watchful eye of the GST intelligence wing for a long time.

SNK Pan Masala Manufacturer JJ Parsley Pvt Ltd is just seven years old. The company was registered on June 30, 2016 at ROC Kanpur. The company was started with just five lakh rupees. The SNK brand was launched five years ago. In the meantime, SNK had captured 80 per cent of the market in the Kanpur belt.