Case against Ludhiana firm for filing wrong undertaking

Punjab Excise and Taxation Department has written to Ludhiana Police to register an FIR against the owner of a firm for filing wrong undertaking and affidavit to get exemption from payment of entry tax.
The department has directed to lodge a case against Ankit Malhotra, owner of Ludhiana-based Balaji Sales Corporation.
Confirming this, Punjab Excise and Taxation Commissioner Anurag Verma said, the firm obtained exemption from payment of entry tax on yarn imported by him.
The dealer imported about Rs 6 crore worth of yarn and did not pay any tax on it, taking a plea that he was converting yarn into cloth and selling the same as tax free item.

However, when the premises of the firm was inspected by the officials, it was found that the dealer did not have any machinery to manufacture cloth.
It was also found that the dealer had managed to evade more than Rs 30 lakh.

Apprehending similar malpractice by other dealers, the department has issued directions to all Assistant Excise and Taxation Commissioners in the state to scrutinise records of all yarn dealers who obtained exemption from payment of entry tax, Verma said.
Wherever there is a possibility of tax evasion, business premises of those dealers shall be inspected and production and manufacturing capacity will be checked, he said.

During raids at several firms it was found that some of them were indulging in malpractices, he said adding that strict action will be taken against those firms too.