In a concerted effort aimed at curbing tax evasion and regulating the illicit trade of tobacco products, officials of the Andhra Pradesh Goods and Services Tax (AP GST) Act, 2017, in coordination with the Vigilance and Enforcement (V&E) Department, recently conducted surprise inspections at Guntur and Vizianagaram districts.
Acting on credible intelligence regarding suspected evasion of statutory tax obligations and improper documentation of goods, GST sleuths on two separate occasions and in two regions took prompt action seizing goods worth over a massive Rs 2.8 crores.
In Guntur the department made a surprise visit to Shop No. 33, Annapurna Commercial Complex Welfare Society, Budampadu Bypass Road wherein the officials found undocumented cigarettes of brands GTPL Step and GTPL Vimal of Quantity 206 bales (Each bale containing 2 cartons, each carton holds 60 boxes, and each box includes 20 packets of 65 mm filter cigarettes).
The department estimated the Market Value of this seizure at a whopping Rs 1,97,76,000.
Dish Wash Soaps
Dish Wash Soaps of Zumc brand containing 265 cartons (Each containing 12 pieces with MRP Rs 55 each were seized too. The declared value of these have been put at Rs 1,74,900.
Vehicular Inspection in Vizianagaram
Similarly, on another date the department officials in Vizianagaram conducted a surprise vehicular check at Ramabhadrapuram, Vizianagaram Dist. and intercepted the vehicle with Registration No. BR01GM9224.
Preliminary inspection revealed that the vehicle originated from the state of Bihar and was ostensibly transporting dishwashing soaps. However, upon detailed examination, it was discovered that the dishwashing soaps were strategically placed only as a superficial cover. Beneath this top layer, large quantities of cigarettes were being transported in an attempt to evade detection.
The consignment was supported by an invoice issued in the name of M/s M.B. Enterprises, Guntur. Upon verification, it was found that M/s M.B. Enterprises is a fictitious entity and the said entity is not registered under the Andhra Pradesh Goods and Services Tax (APGST) Act, 2017.
The invoice appears to have been fabricated to lend an air of legitimacy to the illicit transportation.
The seizure led to the officials to unearth GTPL Vimal platinum brand of cigarettes of quantity 100 cartons (Each carton holds 60 boxes, and each box includes 20 packets of 65 mm filter cigarettes). The estimated Market Value of this put at Rs 96,00,000/-.
The officials also seized dish wash soaps of quantity 500 cartons (Each containing 12 pieces with MRP Rs 55 each) with a declared Value as per MRP Rs 2,53,700/-.
Legal Measures Taken:
As per the department a mediator’s statement was prepared to document the seizure process, Undocumented cigarettes were seized and an FIR was filed under the Cigarettes and Other Tobacco Products Act (COTPA), 2003, for violations involving lack of health warnings and tax documentation.
And all confiscated items were entrusted to Mr. B. Bhaskar, Deputy Tahsildar, Civil Supplies Department, Guntur East.
Statutory Proceedings:
The department has initiated proceedings under Section 67 of the Andhra Pradesh GST Act, 2017 for unauthorized stocking and misreporting of taxable goods.
A formal complaint has also been lodged under COTPA, 2003, addressing illegal possession and potential distribution of tobacco products in contravention of statutory health and tax compliance norms.
‘This enforcement action underscores the commitment of the AP GST Department and allied agencies to uphold tax law and public health regulations, particularly concerning high-risk goods such as tobacco products’ said Mr Babu.A, IAS, Chief Commissioner of State Taxes.
