VAT evasion: Transport firm godown sealed

The Excise and Taxation Department has sealed the godown of Patiala Freightways, a transport company on Gill Road, for evading Value Added Tax (VAT) to the tune of lakhs of rupees.

A team from the Excise and Taxation Department, under the supervision of Deputy Excise and Taxation Commissioner (DETC) Jarnail Singh, conducted the raid this evening. The team found goods worth Rs 15 lakh for which the owners did not have bills. The team also sealed the godown.

According to sources, the department had received a tip off that the transport company was evading VAT, which was running into lakhs of rupees. A team from the local police also assisted the raiding officials.

Sources said the officials asked the transport company to provide the bills of the goods worth Rs 15 lakh lying in the godown or pay a fine of about Rs 6 lakh.

But the owner could neither produce the bills nor he could pay the fine, which subsequently led to sealing of the godown.

DETC Jarnail Singh said besides the local police, the employees of the taxation department have also been deployed at the sealed godown.