News: Federation demands CBI probe into evasion of taxes

The city-based Federation for People’s Rights today urged the Puducherry Administration to order a CBI probe into alleged evasion of taxes to the tune of Rs five crore by a liquor manufacturing unit here.

In a memorandum submitted to Lt Governor Iqbal Singh, Federation Secretary G Sugumaran alleged that Puducherry Government fixed and collected 58 per cent sales tax for IMFL products and exempted four distilleries here from the sales tax following ‘murky’ deals. He said various companies were bottling liquor in these companies and were selling it in order to reap the benefit of the tax exemption. The government had imposed an additional excise duty from April 2007 to compensate the revenue loss because of the tax exemption, he pointed out.

The Mumbai-based Tilaknagar Industries Limited followed the category of declared price range as per case from Rs 850 to Rs 1,049 and paying Rs 522 for each case to the government, he claimed, adding if the company crossed over to the next category, it would have to pay excess additional excise duty to the government. Eventhough, it crossed over to the next slab of Rs 1,050 to Rs 1,349, it altered the accounts to maintain the Rs 850 to Rs 1,049 slab, thereby, cheating the government to the tune of Rs five crore from it’s five lakh cases, worth Rs 300 crore, sold in the last three years, he claimed.

UNI / 18.02.2010.

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