Friday,
May 25, 2001, Chandigarh, India
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Excise department to file report on raids today Ludhiana, May 24 A joint team of the CBI and the Excise and Taxation Department had raided the local railway station on the instructions of the Punjab and Haryana High Court. The High Court had instructed the CBI to investigate the nexus of railway staff, traders and Excise and Taxation Department officials, that was causing a huge loss to the state exchequer. The hosiery traders were allegedly involved in tax evasion worth crores. After the raids, the hosiery traders were found indulging in tax evasion through this safe passage as officials of the department were not allowed to check the goods once these entered the railway station. The railway parcel booking staff collected only transport charges and did not demand any bills. The traders preferred to send the hosiery items worth crores to Uttar Pradesh, Bihar, West Bengal and other states through railway against the road route, where the material was checked at the Information Collection Centres (ICCs) when it crossed the state border. Due to lack of the cooperation of the railway officials, the state was losing a huge amount. The city traders had organised railway traffic jams and rallies against the raids, but the stand of the department was vindicated when they found a huge amount of tax evasion. Out of more than 2400 packets, only 200 packets were found genuine and penalty was imposed on other items, said Mr Pritpal Singh. He said it was the result of small raid of 2 to 3 hours that Rs 1 crore has been recovered. The loss of tax could be well imagined as the traders also sent their material via Jalandhar, Phagwara, Khanna and other stations. The State Government had been pleading with the Railways Ministry to allow the setting up of information collection centres at the major railway stations in the state to plug the safe passage of goods evading tax. |
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