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Firm’s MD arrested for evading Rs 1 crore GST customs

Firm’s MD arrested for evading Rs 1 crore GST customs


PUNE: The directorate general of GST intelligence (DGGSTI) on Tuesday said it had arrested Vishal Kumbhardare, managing director of Siddhakala Renewable Energy Systems, for evading GST customs to the tune of Rs 1.07 crore. The department said he not only evaded duty, but also misled the government by not using the imported material for the required purpose.

“To promote the solar energy sector, the Union government has exempted customs duty on evacuated tube required to manufacture solar water heater systems. Kumbhardare had imported evacuated tubes under this scheme. However, instead of using the tubes for manufacturing purpose, he ‘quietly’ sold them in the open market and thereby evaded payment of customs duty,” the DGGSTI said in a statement.

The DGGSTI also alleged that he had not maintained proper records as required under the law. The tax evasion period spanned from April 2015 to March 2018, said Vaishali Patange, deputy director, DGGSTI, Pune Zone.

Patange said investigations and quasi-judicial proceedings of the department will continue and he will be served a repayment notice, including penalty.

Technically, Kumbhardare can challenge the arrest in court if he thinks he has been framed wrongly by proving he has evaded no duty. Kumbhardare, the department said, has been remanded in magisterial custody until August 13.

When contacted, Shweta Bansi, marketing manager of the company, denied any information of the arrest and, then, citing traffic noise said she would call back. An SMS sent to her remained unanswered.

Source: timesofindia.indiatimes
Anand Gupta Editor - EQ Int'l Media Network


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