DGGI unearths clandestine pan masala and tobacco manufacturing network in Uttar Pradesh; 27 undeclared pouch-packing machines seized, evasion of about ₹185 crore detected

The Directorate General of GST Intelligence (DGGI) Lucknow Zonal Unit uncovered a clandestine pan masala and tobacco manufacturing network operating across six premises in Chitrakoot and Banda districts of Uttar Pradesh. The operation led to the seizure of 27 undeclared pouch-packing machines, raw materials, and over 15.5 lakh pouches of finished goods, detecting an estimated duty, tax, and cess evasion of approximately ₹185 crore. The proprietor was arrested and remanded to judicial custody. This enforcement action follows the implementation of the capacity-based cess and taxation regime under the Health Security se National Security Cess Act, 2025 (HSNS) and the Central Excise Act, 1944, which took effect on February 1, 2026.