Visakhapatnam GST Officials Detect Alleged Rs 54.60 Crore Duty Evasion in Pan Masala Unit, Three Undeclared Packing Machines Seized:

The Visakhapatnam Central GST Commissionerate has detected an alleged duty evasion of Rs 54.60 crore by a pan masala manufacturing unit in the Pedagantyada area of Gajuwaka.

According to an official release, GST officials searched the registered premises of the firm and found manufacturing activities that had not been recorded in the company’s records. Three undeclared pouch-packing machines were found installed and operating at the site.

Officials said the Health Security se National Security (HSNS) Cess on pan masala is calculated based on factors such as production capacity, the number of packing machines and the weight of the pouches. The HSNS Cess Act, 2025 came into effect on February 1, 2026.

The proprietor of the firm was allegedly involved in the unauthorised manufacture and clearance of pan masala products, officials said. He was arrested on September 25, 2026, under Section 26 of the HSNS Cess Act, 2025.

He was later produced before the Special Judge for Economic Offences-cum-IV Additional Metropolitan Sessions Judge in Visakhapatnam, who remanded him to judicial custody.

Officials said further investigation is underway to identify the full network and ascertain the extent of the operations.