The factory is located in the in Budh Vihar area.
The GST department has unearthed Rs 831 crore tax evasion by an unregistered gutkha or tobacco manufacturing unit in the national capital, according to an official statement.
Based on specific inputs, a raid was conducted at the factory in Budh Vihar area and large quantity of gutka and machines worth crores were seized by officials. The owner of the factory was also arrested during the raid, officials said
According to GST Commissioner, Delhi, Shubhagata Kumar, the firm was evading the payment of Goods and Services Tax (GST) by manufacturing and clandestinely supplying gutkha/pan masala/tobacco products without any registration and payment of duty. At least 65 workers were employed at the manufacturing unit, he said.
"On the basis of the search at the premises of the manufacturer, it was found that illegal manufacturing of gutkha/pan masala/tobacco product was going on, evidenced by a godown, machines, raw materials and manufactured products at the premises," the office of Commissioner central tax (Delhi West) said in a statement.
The materials were supplied without issue of any invoice to evade tax, it said.
The searches resulted in the seizure of finished gutkha and raw materials valued at Rs. 4.14 cr approximately, the statement said.
"On the basis of evidence gathered, stocks seized and confessional statements recorded the total duty evasion is estimated to be approx Rs 831.72 crores. Further investigation is in progress," it said.
The owner of the factory was arrested under the GST Act and produced in Patiala House Court on 2 January, from where he has been sent to judicial custody for 14 days.
With the latest raid, the Delhi GST department has unearthed GST theft of 4,327 crores this financial year.
With inputs from PTI