On 1.12.2014, Local Body Tax department conducted Search & Seizure Operation at the establishment named M/s Baig Steel, Plot No.12, Firdous Colony, Ring Road, Vithal Rukmini Nagar, Nagpur; owned by Shri Hameed Rahim Baig. The dealer is in the business of construction material since 1998. As per the documents seized by the department, the dealer imported the steel of amounts to Rs. 7,01,409 and Rs. 20,55,465/- during the financial year 2013-14 and 2014-15 respectively. Though liable, the dealer has not obtained the LBT registration till date and has also not maintained the purchases and not made any LBT payments till date. As per the statement recorded by the department, the dealer has informed about other purchases pertaining to building construction material such as sand and gravel etc., apart from the purchases mentioned above.
Another search and seizure operation was made on the establishment named M/s Superior Drinks Pvt. Ltd., owned by Shri Narendra Mahendrapal Singh. The dealer being registered under VAT is deemed registered in LBT. The dealer has imported LBT liable goods worth Rs. 3.34 crores since inception of LBT, as per which the liability arises to Rs. 16.71 lacs, whereas the dealer has made LBT payment of Rs. 6.97 lacs only. Though registered under LBT, the dealer has neither maintained the purchase book nor filed the annual return for the financial year 2013-14, as required under the rules. Department has seized several documents from the dealer for verification. The account books, documents seized from the above dealers and statements made by both the dealers will be duly verified by the department and necessary action as deem fit under the rules in regards to LBT liability, interest and penalty etc. will be initiated against the dealers.
As per LBT Rule 9(1), a dealer liable for registration could not carry the business within the city without obtaining LBT Registration. LBT department has observed that many dealers are purchasing and importing various goods without being registered under LBT. Similarly, many dealers are found importing goods in the name of other dealers and also some fake dealers; who does not exist at all. Department with the help of intelligence and informations forwarded by dealers suffering from such practices, has located and short listed many such dealers and shall initiate Search and Seizure action as per section 152J of Maharashtra Municipal Corporations Act, 1949; against all such dealers in future through various batches of LBT staff being formed.
The action was initiated by LBT Officer, Shri Yadav Jambhulkar; Asstt. LBT Officers, Shri Sanjay Mendule, Shri Sumer Gajbhiye, Shri Suresh Dhupe, Shri Vilas Chahande, Shri Ramesh Paddhan and Shri Dattaraj Wankhede; Assistants, Shri Aamir Hussain, Shri Shiv Prasad Yadav and Shri Jageshwar Wankhede; under the supervision of Assistant Commissioner (LBT), Shri Milind Meshram and as per the directions of Hon’ble Municipal Commissioner, Shri Shyam Wardhane and Hon’ble Addl. Dy. Mpl. Commissioner, Shri Pramod Bhusari.