The Visakhapatnam Central GST Commissionerate has detected an alleged duty evasion of ₹54.60 crore by a clandestine pan masala manufacturing unit in the Pedagantyada area of Gajuwaka.,
According to a release issued by the Principal Commissioner’s office, officials searched the registered premises and uncovered active, unrecorded manufacturing operations. Three undeclared pouch-packing machines were found installed and operational at the site.
The officials said: “The capacity-based cess applicable to pan masala comes under the Health Security se National Security (HSNS) Cess Act, 2025, which came into effect on February 1, 2026. Under this framework, the HSNS CESS is computed using the production capacity, the number of packing machines installed, and the weight of the pouches.
The proprietor of the firm was found to be prima facie involved in the unauthorised manufacture and clearance of the pan masala goods. He was arrested on September 25, 2026, under Section 26 of the HSNS Cess Act, 2025.
He was subsequently produced before the Special Judge for Economic Offences-cum-IV Additional Metropolitan Sessions Judge in Visakhapatnam, who remanded him to judicial custody.
Officials stated that further investigation into the network and operations is underway.
Published – September 28, 2026 06:31 pm IST
