The Goods and Services Tax Department has initiated an investigation against meat exporter Al-Marziya Agro Foods after a raid at its Bhagwantpura processing unit in Jhansi allegedly uncovered unaccounted invoices and discrepancies in declared turnover. Officials suspect that the company suppressed nearly ₹10 crore in annual turnover, while the potential tax liability could rise to about ₹80 lakh after a detailed assessment.
Raw Invoices and Financial Records Seized
The raid was conducted by the GST Department’s Special Investigation Branch, which seized raw invoices, accounting records and other business documents from the factory premises.
Officials are examining whether transactions recorded in the seized documents were omitted from the company’s GST returns. Preliminary scrutiny has reportedly indicated differences between the firm’s declared sales and its actual business operations.
The company deposited ₹20 lakh during the investigation. Authorities said the final liability would be determined after the financial records, tax returns and supporting documents are fully examined.
Investigators are also reviewing banking transactions, sales records, purchase documents and tax payments to establish the extent of any alleged turnover suppression.
Links with Moradabad Firm Under Examination
The investigation has expanded after the company reportedly informed officials that the Bhagwantpura unit was operating on behalf of a Moradabad-based firm.
GST authorities are now scrutinising the commercial relationship between the two entities, including billing arrangements, supply records and tax compliance. Investigators are seeking to determine whether the transactions between the firms were genuine and properly disclosed.
Officials have also found indications that the number of animals processed at the unit may have exceeded the figures recorded in its official documents.
The seized records will be compared with information maintained by the Municipal Corporation and the Uttar Pradesh Pollution Control Board to verify production levels, operational permissions and regulatory compliance.
Export Records and ITC Claims Face Scrutiny
The department is also examining the company’s export operations, including documentation related to shipments, tax refunds and Input Tax Credit claims.
Al-Marziya Agro Foods reportedly has an annual turnover exceeding ₹100 crore and exports meat products to countries including Iran, the United Arab Emirates, Saudi Arabia and Qatar.
Preliminary findings have raised questions about possible discrepancies in its Input Tax Credit claims. The company has been asked to submit explanations and supporting records.
Officials said any confirmed wrongful claim could result in recovery of unpaid tax, along with applicable interest, penalties and further action under GST law.
The investigation remains at a preliminary stage. Authorities are verifying financial documents, digital records and transactions involving associated entities before determining the company’s final tax liability.
