Excise dept detects 6 duty evaders

During audits of books and returns filed by assessees, the Central Excise Department has found tax evasion or less payment of duties to the tune of Rs221.67 lakh in excise and service tax during the month of July 2013. Like the I-T department scrutinises returns, excise department too audits the books of accounts along with returns filed by the assessee on monthly basis.

According to department sources, in three cases of excise audit under Ahmedabad Revenue Zone, assessees have been asked to pay differential duty to the tune of Rs80.64 lakh. In the first incident, an assessee did not pay the differential duty on finished goods by showing lower cost of raw material to the tune of Rs4.50 lakh. He had to pay duty along with interest of Rs1.32 lakh.

However, the biggest evasion came to light from Vadodara-based IDMC Limited. The company availed wrong exemption to the tune of Rs56.67 lakh in respect of sub contracts for materials supply to power projects.

While one assessee did not pay service tax to the tune of Rs11.33 lakh, another manufacturer of chemicals and pesticides wrongly availed service tax credit of Rs67.47 lakh.