Kanpur: The incharge Special Chief Judicial Magistrate, Kanpur Nagar, on Thursday granted 14 days’ judicial custody remand of Ajay, who was arrested by the CGST and Central Excise Commissionerate in connection with alleged cess evasion of more than Rs20 crore.The investigation officer, Rajul Nagar, superintendent, CGST and Central Excise Commissionerate, had moved an application through Special Prosecution Officer Ambarish Tandon, seeking 14 days’ custody remand for further investigation.In its order, the court observed that there were sufficient grounds to allow the custody remand application and accordingly granted judicial custody for 14 days. The accused has been directed to be produced before the court through video conferencing on Oct 1.Rajul Nagar had arrested Ajay on charges of allegedly evading cess of more than Rs20 crore. The accused was allegedly operating his business from Ravidaspuram, Gujaini and Mardanpur and was produced before the court on Sept 12.According to Special Prosecutor Ambarish Tandon, under the HSNS Cess Act, 2025, cess on pan masala packaging by machine was imposed with retrospective effect from Feb 2026. The cess was calculated on the basis of the speed of packaging machines and the weight of the pouches.In Ajay’s case, the department calculated cess of around Rs1 crore per month, with three machines allegedly being operated at the premises. The department seized all three machines and took them into its custody.Tandon said this was the first arrest under the HSNS Act in the state. He added that the prosecution had also sought permission from the court for the investigation officer to interrogate Ajay in jail. The court permitted the interrogation. As per the order, the investigation officer will visit the jail on Friday to question the accused, Tandon said.
