DIRECTORATE GENERAL OF CENTRAL EXCISE INTELLIGENCE,
AHMEDABAD ZONAL UNIT, AHMEDABAD.
During the current Financial Year (up to December, 2012), the Directorate General of Central Excise Intelligence, Ahmedabad Zonal Unit has detected Central Excise duty & Service Tax evasion to the tune of Rs.300.63 Crores and has recovered an amount of Rs.100.03 Crores on the spot voluntarily from various evaders of Central Excise duty as well as Service Tax. Out of total recovery of Rs. 100 Crores, more than 80% amount was deposited by the evaders of Service Tax. The recovery of Rs.100 Crores in first nine months of Financial year is one of the highest in India and a significant milestone in the performance of DGCEI, Ahmedabad Zonal Unit. The on-the-spot recovery during the corresponding period in the last Financial Year was about Rs.81 Crores and thus the performance during the current Financial Year is up by 23%. During the first three quarters of the Financial Year the Directorate have come across various types of modus operandy which adopted by the evaders of central excise duty and service tax. For example, some of the Central Excise assessees have been claiming CENVAT credit on the basis of bogus invoices which have been purchased by them from various firms /registered dealers without actually receiving the corresponding goods /raw materials. The Directorate has booked certain cases where the manufacturers of Iron & Steel products have been clandestinely removing their dutiable finished goods without payment of duty and thus evaded substantial amount of central excise duty. It has also been noticed that certain manufacturers of plastic products are claiming substantial amount of CENVAT credit on the inputs which are generally not finding use in the manufacture of their finished products and thus wrongly claiming CENVAT credit for payment of central excise duty on their finished products.
A very significant factor in service tax evasion which have been noticed by the DGCEI during the current Financial Year is that even well known and well established assessees of Service Tax have been evading payment of Service Tax by either not filing return or by suppressing value of the services. There have also been cases where significant amount of Service Tax have been charged and collected from some of the public sector undertakings but same has not been deposited with the government exchequer.
It has also been detected that where certain big manufactures of pharmaceutical products have been making payments in Foreign Exchange abroad for availing various types of services for promotion of their products abroad. However, in violation of Service Tax provision, they have not paid Service Tax as provided under the provision of Service Tax rules as provided under Reverse Charge Mechanism.