Hyderabad: Commercial taxes department officials have uncovered an unauthorised pan masala and gutka manufacturing unit operating from a residential premises at Erragunta near Barkas, during a series of inspections conducted across Hyderabad as part of a crackdown on the illegal tobacco trade.Acting on specific intelligence inputs, officials on Sept 1 inspected 25 premises suspected of being involved in the illegal manufacture, storage and sale of pan masala and other tobacco products, the department said on Wednesday.During the inspection at Erragunta, officials found substantial quantities of raw materials, chemicals and other inputs used in the manufacture of pan masala and gutka at a residential property. They also seized counterfeit packaging material bearing the names and branding of several products.Machinery, finished goods and packaging material found at the unit were seized, the department said.Officials also carried out inspections at premises in Begum Bazaar, Feelkhana, Tolichowki, Golconda, Bada Bazaar, Langar Houz and Babanagar. During the searches, they identified and seized unaccounted stocks of pan masala and other tobacco products.Further investigation is under way to trace the source, movement and distribution network of the seized goods and assess the extent of tax evasion involved.The department said appropriate action would be initiated under the provisions of the Telangana Goods and Services Tax Act, 2017, the Central Goods and Services Tax Act, 2017, and other applicable laws.Officials urged manufacturers, traders and other stakeholders dealing in pan masala and related products to comply with statutory requirements and maintain proper records and accounts.The department warned that strict action would be taken against those found involved in tax evasion, clandestine manufacturing, maintaining unaccounted stock or suppressing taxable transactions.
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