More than 17 teams had carried out search operations on 17 pole manufacturers, including Ahmedabad-based Limdi Prestat Concrete Industries and Shivam Prestat Corporation. Several firms in Rajkot, Junagadh, Porbandar, Bhavnagar and Amreli were also involved. The hollow concrete poles are used for underground wiring and also for overhead high-tension wires.

During the operation, officials found that most of the manufacturers underquoted their sales figures to the department and evaded more than Rs 30 lakh tax collectively.

"It was easy to establish the tax evasion as figures recorded in bill books of the companies did not match with Paschim Gujarat Vij Company's records. The firms have given us post-dated cheques to pay the due against the evaded tax," said a senior state commercial tax official. Officials said that they are probing the two Ahmedabad-based firms and have seized their bill books.

In April this year, Vat officials had carried out search operations on four pole manufacturers in north Gujarat and collected Rs 21 lakh tax evaded by them.

Source: Times of India, India,  dated 02/08/2011