China-made mobiles worth Rs40 lakh seized in Ahmedabad

The Value Added Tax (VAT) department of the Gujarat government has seized China-made cell-phones worth Rs40 lakh on Friday.

These handsets were routed to Ahmedabad from Delhi via a domestic low-cost airline in an attempt to evade VAT.

Acting on a tip off by police department regarding the entry of cell-phones in city on Friday evening, the VAT department
made the haul.

Earlier, police seized 41 parcels of handsets imported from China, but were apprehensive regarding the International Mobile Equipment Identity (IMEI) number of these cellphones. However, all the G5 series handsets had IMEI numbers.

Sources in the VAT department said that police informed them fearing duty theft, which would have otherwise accounted for a loss of Rs6 lakh at 15% to the department.

After the state government increased VAT on mobile handsets from 5% to 15% from April 1, 2011, tax-evaders use various methods to bring un-branded mobile phones to Gujarat. In the past too, the department had seized handsets brought to the city illegally via railways and private travels.