Maharashtra: CGST Commissionerate Belapur arrests director of a firm for GST fraud
Feb 20, 2022
Belapur (Maharashtra) [India], February 19 : CGST Commissionerate, Belapur arrested one of the Directors of M/s. Fantasia Trade Pvt. Ltd., Navi Mumbai for availing and passing on of inadmissible fake Input Tax Credit (ITC) of Rs 81 Crore by using bogus invoices of Rs 479 Crore, said the agency on Sunday.
Acting upon the intelligence developed by using Data Analytics tools, searches were conducted at various locations including the business premises of the firm and the premises of its transporter. Certain incriminating documents were recovered and seized during the searches.
Investigation revealed that M/s. Fantasia Trade Pvt Ltd was acting at the behest of M/s. Arch Pharmalabs Ltd, Mumbai, and there was no movement of traded goods. Statements of the Director of M/s Fantasia Trade Pvt Ltd, its godown keeper, and the owner of the godown were also recorded during the course of the investigation.
On the basis of material evidence gathered during investigation it became clear that prima facie offense as specified in Section 132 of the Central Goods and Services Tax Act, 2017 was being committed with full disregard to the statutory provisions, with an intention to defraud the Government of its due revenue.
The investigation revealed a cognizable and non-bailable offense of availment and utilization of ineligible Input Tax Credit of Rs 81 Crore. Accordingly, by invoking the power under Section 69 of the CGST Act, the Director of M/s Fantasia Trade Pvt Ltd was arrested on February 18 and produced before the magistrate on the same day, who has remanded him to Judicial custody for 14 days.
This operation is a part of efforts by CGST Mumbai Zone to eradicate fake ITC networks, which have been vitiating the healthy economic ecosystem of the country and defrauding the Government Exchequer.
According to the agency, the CGST department is using data analytics and network analysis tools to identify tax evaders. As a part of a special drive, the CGST Mumbai Zone has booked more than 730 cases of tax evasion, detected tax evasion of Rs 6,380 Crore, recovered around Rs 700 Crore, and arrested 56 persons, in the last six months.
Department is going to intensify its drive against fraudsters and tax evaders in the coming days and months, informed the CGST.
