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Finance Ministry denies reports of manipulation by DGGI in Peeyush Jain case

it is made out as if the department has agreed with the deposition of Shri Peeyush Jain and finalised the tax liability accordingly, the note further added.

SNS | New Delhi |

Directorate General of GST Intelligence (DGGI) on Thursday refuted news reports appearing in a sections of the media that it had decided to treat the cash recovered from owner of perfume manufacturing unit M/s Odochem Industries Peeyush Jain as the turnover of the manufacturing unit and proposes to proceed accordingly.

Seeking to ‘set the record straight’ in the wake of alleged speculative news reports, a Finance Ministry note here stated that some reports have even stated that after admitting his liability, Peeyush Jain has, with the approval of DGGI, deposited a total amount of Rs 52 crore as tax dues. It added,
“Thus, it is made out as if the department has agreed with the deposition of Shri Peeyush Jain and finalised the tax liability accordingly.”

In the context of ongoing investigations by the Directorate General of GST Intelligence (DGGI) in the case of M/s Odochem Industries, Kannauj- a manufacturer of perfumery compounds – and its proprietor Peeyush Jain, wherein a total cash of Rs 197.49 crore, 23 kg of gold and offending goods of high value have been recovered so far from two premises, reports have appeared in certain sections of the media that DGGI has decided to treat the cash recovered as the turnover of the manufacturing unit and proposes to proceed accordingly, the Ministry note said.

Some reports have even stated that after admitting his liability, Shri Peeyush Jain has, with the approval of DGGI, deposited a total amount of Rs 52 crore as tax dues. Thus, it is made out as if the department has agreed with the deposition of Shri Peeyush Jain and finalised the tax liability accordingly, the note further added.

These reports are purely speculative, without any basis and seek to undermine the integrity of the ongoing investigations which are being carried out in a most professional manner based on specific intelligence against the party,” accordingto the Ministry.

Further clarifying, the Ministry note said that the total amount of cash in the ongoing case from the residential and factory premises of M/s Peeyush Jain has been kept as case property in the safe custody of the State Bank of India pending further investigations. “No deposit of tax dues has been made by M/s Odochem Industries from the seized money to discharge their tax liabilities and their tax liabilities are yet to be determined,” the added.

Further, the voluntary submissions made by Peeyush Jain, the Ministry maintained, are a subject matter of ongoing investigations and any view on the source of cash seized by the department and the exact tax liabilities of M/s Odochem Industries or other parties involved in the investigation shall be taken on the basis of appraisal of evidences collected from various premises during the searches and the outcome of further investigations.

Based on his voluntary admission of guilt and the evidence available on record, Peeyush Jain was arrested on 26 December 2021 for commission of offences prescribed under section 132 of the CGST Act. He was produced before the Competent Court on 27 December. TheCourt has remanded him to 14 days judicial custody,” the Finance Ministry further explained.