The Central Goods and Services Tax (CGST) Commissionerate, Faridabad, carried out a late-night operation on June 6, 2025, uncovering a massive tax evasion racket involving pan masala and chewing tobacco products.
Acting on data analytics and targeted surveillance, the department unearthed unaccounted goods worth over Rs. 5 crore stored across multiple unregistered premises and intercepted a transport truck illegally carrying goods without valid documentation.
The strike led to the discovery of four unregistered warehouses stockpiling large quantities of pan masala and chewing tobacco, including well-known brands such as Shikhar, Tansen, Kamla Pasand, Double Black, Swagat Gold, SS One, and Hans. One of these premises, located near the Delhi-Faridabad border, fell under the jurisdiction of the CGST Delhi East Commissionerate, which actively coordinated with Faridabad officials during the raid.
A truck was intercepted at the Delhi-Faridabad border, transporting 6,30,000 pouches of Kamla Pasand Pan Masala, with a market value of approximately Rs. 25 lakh. The consignment lacked a valid E-Way Bill and accompanying tax documents—violations under the CGST Act and Central Excise Act.
Further inspections were conducted at the registered premises of a known pan masala manufacturer, where officers identified a mismatch in stock records, particularly for finished goods under the brands Kamla Pasand, Double Black, and Richman.
According to officials, the modus operandi involved clandestine removal of finished goods from the registered factory to nearby unregistered storage facilities. These locations served as redistribution hubs, with trucks dispatched to various parts of Delhi-NCR without E-Way Bills, thus evading GST and excise duties.
The proximity of the Delhi warehouse to the Faridabad facility was a calculated move to facilitate smooth but illegal movement of goods under the radar of tax authorities.
The investigation is ongoing, and further legal action is expected under relevant provisions of the CGST Act and Central Excise Act.
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