CGST officials bust network of 23 firms for claiming input tax credit of Rs 91 crore

Based upon specific intelligence, the officers of the Anti Evasion branch of Central Goods and Service Tax (CGST) Commissionerate, Delhi (West) have unearthed a case of availment/utilization and passing on of inadmissible input tax credit (ITC) through goods less invoices of Rs 91 crore (approx). The modus operandi involved floating of multiple firms with the intent to avail/utilize & passing on of inadmissible credit.

The firms involved in this network are M/s Girdhar Enterprises, M/s Arun Sales, M/s Akshay Traders, M/s Shree Padmavati Enterprises and 19 others. These 23 firms were floated in order to generate goods-less invoices with an intent to pass on fraudulent ITC without paying actual GST to the government. Late Shri Dinesh Gupta, Shri Shubham Gupta, Shri Vinod Jain and Shri Yogesh Goel were associated in the said business of generating/selling fake invoices. These entities are dealing in various commodities and involved in generation of goods-less invoices worth Rs. 551 croreand passing inadmissible ITC amounting to Rs. 91crore(approx.). All the three accused tendered their voluntary statement admitting their guilt.

Therefore, Shri Shubham Gupta, Shri Vinod Jain and Shri Yogesh Goel knowingly committed offences under Section 132(1)(b) and 132(1)(c) of the CGST Act, 2017 which are cognizable and non-bailable offences as per the provisions of Section 132(5) and are punishable under clause (i) of the sub section (1) of Section 132 of the Act ibid. Accordingly, they were arrested under Section 132 of the CGST Act on 10.07.2021 and remanded to judicial custody by the duty Metropolitan Magistrate for 14 days. Further Investigations are in progress.

Delhi Zone has been making sustained efforts to check evasion of GST, leading to detection of Rs. 91.256 crore in the present FY and 3 persons have been arrested in these matters.

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CGST Delhi officials arrest man for input tax credit fraud of around Rs 94 crore

The officers of CGST Delhi North Commissionerate upon data analysis and gathering of intelligence zeroed in on Shri Krishan Kumar who was involved in creating and operating fake firms using identification documents of his friends/employees.

As per investigation conducted so far, a total of 5 fake firms namely M/s Shradha Traders, M/s Anshara Impex, M/s Vijeta Enterprises, M/s SM Agencies and M/s Deepasha Sales were created by him for the issuance of goods-less invoices for items like butter/ghee/oil and passed on inadmissible Input Tax Credit (ITC) of Rs. 94 crore approx.  

During the search of his residence incriminating documents like ATM cards, signed cheques, bank documents, stamps of these dummy firms including stamp of the transport company as mentioned in the e-way bills of the fake firms and outer packets/cases of SIM cards of mobile phones used for registration of firms were recovered.

In view of the above Shri Krishan Kumar has thus committed offence specified under Section 132(1)(b) of the CGST Act, 2017. Accordingly, he has been arrested on 25.03.2021 under the provisions of the Section 69(1) of the CGST Act, 2017. He was sent to 14 days judicial custody by the duty Magistrate. Further investigation is under process.

It is pertinent to mention here that in the financial year 2020-21, CGST Delhi Zone has made total of 40 arrests in various cases involving GST evasion amounting to Rs. 5,310 crore.

 

DGGI Gurugram officials arrest 2 men for defrauding exchequer of more than Rs 690 crore

In an ongoing investigation the Directorate General of GST Intelligence, Gurugram Zonal Unit, were able to arrest two gang members of a fake invoicing syndicate, namely Shri Vikas and Shri Manish, who were involved in GST fraud by way of issuance of fake GST invoices in excess of Rs 4,800 crore which defrauded the exchequer of more than Rs 690 crore.

Both the accused, resident of Sirsa, Haryana, had relocated to Nepal in a bid to escape being caught and to perpetuate the fraud. After a tip off they were nabbed and were found to be in possession of huge incriminating documents and gadgets in the form of multiple laptops, multiple smart phones, debit cards, PAN and Aadhar details of multiple persons, multiple notary stamps etc. Both the accused were arrested and were sent to Judicial custody. Analysis of the huge data is underway and involvement of other people and companies cannot be ruled out. The entire scam was orchestrated by using various high tech apps and messaging services which did not require use of direct calling. They were actively collaborated by other masterminds in different parts of the Country.

This present arrest is in continuance of the case in which DGGI, GZU had earlier arrested Shri Kabir Kumar who was caught at the airport while fleeing the city and had been arrested for ITC fraud of Rs 527 crore.

Based on evidences available and statements recorded, hundreds of fake firms have been created on the basis of PAN and Aadhar cards of unknown persons whose data have been procured by a separate syndicate. The fake firms have been found to have created fake invoices in excess of Rs 4,814 crore. Therefore, the accused were arrested on 08.03.2021 and produced before the Duty MM and have been remanded for 14 days of judicial custody.

 

DGGI Gurugram officials arrest man for defrauding exchequer in excess of ₹ 13.76 crore

The Gurugram Zonal Unit of Directorate General of GST Intelligence has arrested a person, namely Mr. Pradeep Jain, resident of Muzaffarnagar, UP who is Director of M/s PSR Metals Pvt Ltd, Muzaffarnagar.

An investigation was conducted against M/s PSR Metals Pvt Ltd located at Khasra No 362/2, Near Begrajpur Industrial Area, Village HussainpurBopada, Muzaffarnagar, UP-251001 by way of visits conducted at the registered address of the said company. During the investigation, Mr. Pradeep Jain, Director of M/s PSR Metals Pvt Ltd. claimed to procure both old and non-guarantee batteries from various registered and unregistered dealers and also claimed to manufacture lead from old batteries and doing trading of new batteries (termed non-guarantee batteries). It is pertinent to mention here that in GST regime, old/scrap batteries are taxed at 18% GST rate and new/fresh batteries are taxed at 28% GST rate. However, verification with their suppliers revealed that they had sold only fresh batteries to M/s PSR Metals Pvt Ltd.

Confronted with these facts, Mr. Pradeep Jain now claimed that they were also manufacturing lead from these new batteries, whereas earlier he claimed only trading of the same. Investigation showed that it was not economically viable to manufacture lead from destroying and breaking down fresh batteries to pick miniscule lead therein. It appeared that they were actually using bazaar scrap to manufacture such lead and was using the ITC of fresh batteries while clearing these new batteries without issuance of invoices.

Thus, Mr. Pradeep Jain, was found to have defrauded the exchequer in excess of ₹ 13.76 crore. by clearance of goods without issue of invoices. He was therefore arrested on 27.02.2021 under section 69 of the CGST Act, 2017. The Magistrate sent him to Tihar Jail for 10 days’ Judicial Custody. Further investigation in the matter is under progress

 

Officials from Railway Zones across the country asked to share with the Board their best practices and policy suggestions for National Optimisation

 

Indian Railways must continue to optimise and reduce the costs and further improve all productivities to make this year an exceptional year in spite ofCovid. This was said by Shri Piyush Goyal, Minister of Railways, Commerce & Industry and Consumer Affairs, Food & Public Distribution. while reviewing the working of all the Railway zones.

The Minister encouraged the officials from across the Railway zones to share with the Board   their best practices and policy suggestions for National Optimisation. These suggestions could be about anything that can contribute to better passenger services, safety, revenue generation,freight & business development, increasing the speed or anything.

The Minister asked the Railway Board to study the best practices of zones at earliest. Great practices or ideas that are being implemented at one place can be then replicated at other places and national optimisation can be achieved.

Shri Goyal added that Energy expenses on running of trains should further be rationalised.

The Minister said that record capex allocation in the historic budget is an opportunity for capacity expansion and creating the foundation of future ready Railways.

Shri Piyush Goyal said freight operations of Railways have helped in contributing to the economic and industrial activities of the country in a big way and therefore loading and freight momentum must continue be maintained.

He added that Infrastructure projects under various stages of completion must be monitored on a daily basis and all timelines should be adhered to.

Shri Piyush Goyal said that Covid precautions must continue to be adhered to by Railways.

It may be noted that this year, Railways witnessed a “record” budgetary allocation of ₹1.10 lakh crore in the Budget, with total capital expenditure outlay of ₹2.15 lakh crore for the coming financial year. The total capital expenditure outlay includes, “highest ever” ₹1.07 lakh crore from gross budgetary support, ₹7,500 crore from internal resources and over ₹1 lakh crore from external budgetary resources.

The thrust of Annual Plan 2021-22 is on infrastructure development, throughput enhancement, development of terminal facilities, augmentation of speed of trains, signalling systems, improvement of passengers/users’ amenities, safety works of road over/underbridges.