In a significant enforcement action, the Central Goods and Services Tax (CGST) Commissionerate, Faridabad, has uncovered a large-scale tax evasion racket involving the clandestine storage and transportation of pan masala, chewing tobacco, and supari.
During a midnight operation conducted on March 29-30, 2025, CGST officers raided an unregistered warehouse in a remote farm area, far from the highway, used by a distributor to conceal and supply these goods illicitly across Haryana and Rajasthan. The operation resulted in the seizure of:
- 1.06 crore pouches of chewing tobacco
- 1.24 crore pouches of chewing supari
- 9.79 lakh pouches of pan masala
The total value of the detained and seized goods amounts to Rs. 3.13 crores.
Modus Operandi
Investigations revealed that the unregistered premises functioned as a covert warehouse for stockpiling goods sourced from a major brand without proper documentation. The illicit trade involved transporting these products without generating valid e-way bills, thereby evading GST obligations. Additionally, a registered dealer’s premises were also found to contain unaccounted goods.
Further intensifying their crackdown, CGST officers conducted searches at five additional locations linked to the network. In the course of these operations, an unregistered truck carrying the illicit goods was intercepted, found to be operating without an e-way bill or valid documents. The truck was released upon payment of duty and penalty amounting to Rs. 15.66 lakhs.
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