HYDERABAD: The regional unit of the Directorate General of Central Excise Intelligence here has detected huge tax evasion by two companies dealing in aluminium products.

The amount of evasion involved was estimated to be Rs. 9 crores and three persons, Pelluru Bhaskara Rao, Bharat Bhushan Agarwal and Rahul Agarwal, had been remanded in judicial custody by the Special Judge for Economic Offences, City Criminal Court, Nampally, in this connection.

Officials of the Hyderabad regional unit of the Central Excise Intelligence, over a period, gathered information on illegal methods adopted by the accused representing two Hyderabad-Rangareddy-based aluminium companies for availing themselves of CENVAT credit on certain goods not received by them.

Duty evasion

It was contended that companies had not used any of the goods earmarked in the records as used in manufacture of their finished products and clandestinely cleared aluminium extrusions.

It was submitted to the court that one of the companies cleared 1,000 metric tonnes of aluminium extrusions valued at about Rs.10 crores to another company whose registered office is in Secunderabad, between September 2002 to August 2005 and it involved a duty evasion of Rs.1.60 crore.

CENVAT credit was also availed to the tune of Rs. 80 lakhs on aluminium wire rods and aluminium sheets and coils (costing Rs.5 crores) that were not inputs and also not received by one of these companies.

The records showed that these products had been received and "issued to foundry for melting".

The authorities produced the accused before the Special Judge on Monday and the latter remanded them to judicial custody for ten days.

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