Excise Dept Busts Cooler Makers

Officials of the central excise have now turned the heat on cooler manufacturers.

In a recent case, excise sleuths have detected a unit manufacturing branded exciseable goods and claim to have unearthed evasion of lakhs of rupees of duty over the last five years.

Vijay Budhiraja, promoter of Vijay Steel and Metal Works and the owner of Snow Cool brand of cooler kits is said to have masterminded the excise evasion.

The kits were being manufactured by VSM India, promoted by Vijays wife Saroj Budhiraja. During the investigations, it was found that the unit was not maintaining any records regarding production and was transferring all its production to a godown, maintained separately to conceal the actual production.

 

When the excise sleuths carried out their raids after surveillance for several days, over 20 workers were found on the premises of the godown, along with branded finished goods that were worth Rs 20 lakh.

It was found the unit was manufacturing nearly 80 kits everyday. The duty evasion that was detected was to the tune of Rs 30 lakh.

According to excise rules, all branded goods have to pay excise duty, which is not necessary for unbranded goods for which the annual clearance is less than Rs 30 lakh.

Excise officials were reportedly threatened by Budhiraja and his workers during the raids since Budhiraja also happens to be the president of the Kamla Market Traders Association.