By Our Correspondent
NEW DELHI/BHUBANESWAR: Based upon specific intelligence, the officers of the Anti Evasion branch of Central Goods and Service Tax (CGST),Commissionerate, Delhi (East) have busted a major racket for generation of huge inadmissible input tax credit (ITC) through fake billing of Rs 1,278 crore (approx). The well established syndicate was being operated by floating seven different fake firms with the intent of passing of inadmissible credit to the tune of Rs 137 crores (approx). Searches were conducted over more than nine places spread over different locations in the state of Delhi and Haryana to identify the taxpayers, who were defrauding the Government of its legitimate taxes. The modus operandi of the fraudulent taxpayers includes bogus invoices/bills creation, without actual movement of goods. All the e-way bills generated to transport the goods were fake.
The mastermind of the entire racket Ashish Aggarwal has been arrested under Section 132 of the CGST Act on 29.10.2020 and has been remanded to the transit judicial custody by the duty Metropolitan Magistrate till the hearing of regular judicial remand application by the CJM Patiala House Court. The accused kingpin of this fake billing racket has been absconding for more than 60 days and after intense coordinated efforts of the officers of Anti Evasion branch, his presence was secured to record the statement, wherein he admitted his guilt and was arrested subsequently.
The primary beneficiary firm of this bogus billing network, was M/s Maya Impex, which has been registered in the name of Ashish Aggarwal’s 66 years old mother through which fake ITC of Rs 77 crore has been passed on. Ashish Aggarwal 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 punishable under clause (i) of the sub section (1) of Section 132 of the Act ibid.
The fake billing operation was primarily engaged in generating and passing of fake ITC primarily to the milk products industry. Bogus invoices were raised against fictitious sale of milk products such as Ghee, milk powder etc. It is pertinent to mention here that apart from the other number of distinct companies, major brands like M/s Milk Food Ltd. was one of the major beneficiary of this inadmissible credit. During the course of search operations huge quantum of incriminating documents pertaining to this racket were recovered.
So far the inadmissible input tax creditof more than Rs 7crore has been recovered and further investigations are underway to expose the other fictitious billing entities associated with this syndicate, who have defrauded the exchequer.
Meanwhile, the Directorate General of GST Intelligence (DGGI) Gurugram Zonal Unit (GZU), Haryana has arrested one Kabir Kumar, resident of New Delhi on charges of creating and operating fictitious firms on forged documents and passing fake input tax credit by way of issuance of invoices without any actual receipt or supply of goods or services.
It is apparent from the investigation conducted till date, that Kabir Kumar created multiple proprietary companies merely on paper based in Gurgaon, New Delhi, Faridabad, Solan, Noida, Jhajjhar, Sirsa etc. During the investigation of his premises, it was revealed that Kabir had also attempted to flee the city, however, he was prevented from doing so at IGI Airport by the DGGI Officers with the support of Customs and CISF officials.
Further to that, he admitted to creation of 31 firms which have generated bogus invoices without actual supply of goods amounting to Rs. 2993.86 croreand ITC amounting to Rs 392.37 crore. Mutiple evidences, such as laptop, mobile phones and 140 SIM cards were resumed from his person.
The investigation spanned multiple locations in Delhi and based on documentary evidence and statement recorded, it was established that Kabir Kumar is the key person in orchestrating this racket of making fake firms on forged documents. Accordingly, Kabir Kumar was arrested today and produced before Duty Magistrate, Delhi, who ordered judicial custody. A total fake ITC of more than Rs. 392 crore has been thus passed by the accused.Further investigations in the matter are under progress.
