As part of its drive against fake billing operations, the Central Goods and Services Tax (CGST) Commissionerate, Thane (Mumbai CGST Zone), has unearthed a multi-layered network of fictitious firms generating and passing on fake input tax credit (ITC). The Commissionerate has said it arrested a key person in the case, who has confessed to involvement in the racket of fake invoices in several crores.
In a first case, Rs 90.68 crore racket was boosted and the mastermind was arrested and sent behind the bars. In another case, two firms were booked for Rs 292 crore. In the first case, the accused had opened a firm namely messers Doshi Marketing which was operating from Bhayander west area of Thane district. The accused firm was indulged in fraudulent availment and utilization of Input Tax Credit to the tune of Rs 90.68crores without receiving the goods or services in violation of the provisions of CGST Act 2017.
Messers Doshi marketing firm was dealing in trading of Asbestos, cotton yarn, sewing thread, etc. The firm had fraudulently taken credit of Input Tax showing the value of goods amounting to Rs.503.80crores. This was a paper transaction only without any physical supply of goods and without the filing of E-way bills. The mastermind accused was arrested under provisions of CGST Act 2017 and was produced before the Courts of Judicial Magistrate of First Class (JMFC) Court Thane. The court has remanded the accused to judicial custody till the 5th November 2021.
In another two separate cases M/s. Trimurti Gems and M/s. Nikita Trading & Co., both firms were operating in the Bhayander area. Both firms were also involved in the activity of fraudulently availing and passing on the Input Tax Credit. This ITC was amounting to Rs.292 crores. Thane CGST has booked both the firms. Both these firms were not active and their registrations had been canceled. Efforts are on to nab the masterminds in these cases also.
Thane CGST Commissionerate was keeping astrict vigil to track down violators. When it was observed that such a huge fraud is taken place, they swung into action and cracked the whip on culprits. The mastermind accused was arrested under provisions of the CGST Act 2017 and was produced before the JMFC Court Thane. The court has remanded the accused to judicial custody till the 5th November 2021.
One of the senior officials from Thane CGST on the condition of anonymity said “Besides our routine work we have activated our sources to keep a track in various parts of Thane districts to unearth fraud. We are also checking each and every document that is submitted for tax benefits and evaluating them thoroughly. Whenever we get any hints or doubts, we give surprise visits to the firms where we get a crystal clear picture of the entire episode. We are trying to nail culprits who are taking undue advantage of the government treasury. We will ensure that no fraudster should take fake benefits”.
Editor in Chief : Mewati SItaram
