TWO men have appeared before Blackburn magistrates charged in connection with a massive £400,000 contraband cigarettes and tobacco operation.

Colin Yates, 41, of Elgar Close, Blackburn, and Francis O'Brien, 45, of Broughton Close, Blackburn, who together run a pop delivery business, are charged with two specimen charges of fraudulent evasion of duty.

The magistrates directed the case should be heard at Preston Crown Court after hearing that an initial examination by forensic accountants of two books seized in raids in October, had showed unpaid duty of £406,000.

More than 50 kilograms of tobacco and nearly 10,000 cigarettes was also seized in the raids.

Andrew Church-Taylor, defending, said that given the figure of £406,000 VAT alleged by Customs and Excise he accepted that the court would order trial at Preston Crown Court.

Both men were remanded on bail until January 10 for the preparation of committal papers.