The Hindu : Tamil Nadu / Coimbatore News : Duty evasion: huge haul of cigarettes in Coimbatore

Online edition of India's National Newspaper
Wednesday, Feb 23, 2011
ePaper | Mobile/PDA Version

Tamil Nadu

Tamil Nadu - Coimbatore

Duty evasion: huge haul of cigarettes in Coimbatore

Special Correspondent

Drive conducted on over 125 premises across India

Cigarette cartons sent as parcels thro' trains
Legal action being initiated against those stocking such undeclared cigarettes

— Photo: K.Ananthan

Illegal:Cigarette cartons and packets seized by the Central Excise Intelligence Unit in Coimbatore on Tuesday.

Coimbatore: The sleuths of the Directorate of Central Excise Intelligence Unit in a search conducted at six places in Coimbatore, as part of a nationwide drive, seized duty-evaded cigarettes worth Rs. 1 crore and business-related documents worth over Rs. 2 crore.

According to sources, the drive was conducted on over 125 premises across India including the cigarette manufacturing units in Bhopal, Mathura in Uttar Pradesh, and dealers in New Delhi, besides distributors in south India.

The sources said that these cigarettes were in the market only in north India and recently found its way into the south Indian market as well. Sourcing tobacco from Guntur in Andhra Pradesh, the manufacturers in Bhopal and Mathura used to make cigarettes and market them at the rate of Rs. 16 or Rs. 18 per pack of 10, whereas the cigarettes that had suffered duty used to be priced over Rs. 45 per pack.

The idea was to distribute the low-cost cigarettes among the low-income groups and the rural population to help them migrate to cigarette smoking from beedi usage. The huge difference in costs also lured many who marketed the products expecting to make quick money.

Officials said that the ‘cigarette mafia' operating in north India had its base in the United Arab Emirates.

Monetary transactions and unaccounted profits arising out of the sale of duty-evaded cigarettes endangered not just the nation's economy but also national security, the officials added.

In Tuesday's drive, the sleuths came across cigarette cartons sent as parcels through trains. Legal action was being initiated against those involved in stocking and selling these cigarettes.

In the wake of the raids, the State Commercial Taxes Department has also begun its inquiry to ascertain the evasion of sales tax on these products.

Printer friendly page
Send this article to Friends by E-Mail

Tamil Nadu