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Ramkrishan Upadhyay

Tribune News Service

Chandigarh, October 16

In the first major crackdown against companies facing a Vigilance probe for a scam running into crores of rupees, the UT Excise and Taxation Department has served a notice on the Ind-Swift company for depositing Rs 66 crore after an assessment by the department.

The scam came to light during the hearing of a case of the company in the court of Parimal Rai, Adviser to the UT Administrator.

Sources said the Excise Department had imposed a penalty of Rs 5.90 crore on the firm, which was challenged by the company. During the hearing of the case, advocates presented “the order of the settlement” in just Rs 5,000, which raised the Adviser’s suspicion, who ordered a probe.

The probe opened a Pandora’s box and over 900 cases were found in which fake entries had been made. In the preliminary inquiry, it was revealed that the fake entries were made on computers, while the papers of the assessment were not available in the department. After the inquiry, the department handed over the matter to the Vigilance for further probe. Later, the Administration handed over the case to the crime branch of the police.

The sources said the entries were made to show that the firms had deposited the tax, but in reality, it was never deposited with the government.

RK Chaudhary, Assistant Excise and Taxation Commissioner, said a majority of the cases were in the final stage of assessment. The department will recover the tax along with penalty from the defaulters.

The sources said the scam was perpetrated in connivance with employees of the Excise and Taxation Department and settlement orders were issued to dealers. While the companies did not pay tax to the department, it was shown as paid in the department records. It is expected that the scam may cross the figure of Rs 400 crore.