HomeIndia NewsGhaziabad: CGST busts illegal pan masala factory, reveals tax evasion of more...

Ghaziabad: CGST busts illegal pan masala factory, reveals tax evasion of more than Rs 17.88 crore


The Anti-Evasion Branch of the Central Goods and Services Tax (CGST) Ghaziabad Commissionerate has busted an illegal pan masala and tobacco manufacturing unit running in a residential complex located in Vrindavan Garden, Sahibabad. Two accused have also been arrested during the action.

Packing machines of ‘CITI’ pan masala, ‘AJ-07’ tobacco products found

CGST officials conducted the raid under CGST Act 2017 and HSNS Act 2025. During investigation, two pouch packing machines and one sealing machine used for packing ‘CITI’ Pan Masala and ‘AJ-07’ tobacco products were found in working condition on the spot. During the raid, finished goods, raw materials, packaging materials, machinery and many digital evidence were seized. Apart from this, tobacco products worth about Rs 20 lakh have also been recovered.

Investigation revealed that pan masala and tobacco products were being manufactured and supplied illegally without necessary registration and without depositing duty/cess. According to officials, revenue theft of more than ₹ 17.88 crore has been detected so far in this case, while the assessment of GST liability is still going on.

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Court sent two accused to judicial custody in the action

After the action, Sanchit Seth and Mohsin Khan were arrested and presented in the competent court, from where both were sent to judicial custody. CGST Ghaziabad Additional Commissioner (Anti-Evasion) Sahil Seth said that the department’s action against tax evasion and illegal manufacturing in the pan masala and tobacco sectors will continue. Meanwhile, Assistant Commissioner (Anti-Evasion) Khushboo Oberoi said that investigation is going on to identify the entire supply network and other people involved in it.

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