Chandigarh: The Punjab Government on Thursday announced firm action against tax evasion and internal indiscipline, with the arrest of a Ludhiana-based businessman in a ₹9 crore GST fraud case and the dismissal of an Excise and Taxation Inspector for prolonged unauthorised absence.
Punjab Finance, Excise and Taxation Minister Harpal Singh Cheema said a major operation by the State Intelligence and Preventive Unit, Ludhiana, led to the arrest of Rohit Gupta, proprietor of M/s Maa Steel, Ludhiana. The firm was found to be issuing fake invoices for HR/CR coils and strips without any actual supply of goods, enabling the fraudulent passing of input tax credit exceeding ₹9 crore.
According to the minister, searches conducted by the Taxation Department also revealed serious discrepancies between the physical stock available at the premises and the company’s official records, indicating a wider network involved in the scam.
Harpal Singh Cheema
Cheema said the probe has been expanded to include several manufacturers of cycle parts and spare parts suspected of misusing export refunds and benefits under an inverted duty structure. “Our government is committed to aggressively curbing tax evasion, safeguarding public revenue, and ensuring a level playing field for honest taxpayers,” he said.
On the administrative front, the minister announced the dismissal of an Excise and Taxation Inspector with immediate effect under the Punjab Civil Services (Punishment and Appeal) Rules, 1970, following due process. The action was taken in connection with the official’s prolonged unauthorised absence from duty.
Emphasising strict discipline within government departments, Cheema said the Bhagwant Mann-led state government has adopted a zero-tolerance policy towards indiscipline. He added that four employees have already been terminated for similar misconduct, while disciplinary proceedings are underway against another Excise and Taxation Inspector and a clerk.
“These actions underline our resolve to ensure accountability, efficiency and integrity in public service,” the minister said, reiterating that the government will not tolerate tax evasion or any form of malfeasance by public servants. 
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Ekjot Singh
Special Correspondent covering governance, public policy, and development for Punjab Today.
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