By Our Correspondent
NEW DELHI: The CGST Delhi North Commissionerate arrested one person who received fake/goods-less invoices valued at Rs 71,22,95,370/- involving fraudulent Input Tax Credit of Rs 12,82,05,579/- from 30 bogus/fake firms.
The modus operandi was to create various fake firms in the name of employees of the operator of fake firms and other persons. Fake e-way bills were generated for several vehicle numbers. Bogus invoices were received by the accused from the operator of fake firms for the purpose of availment of fraudulent Input Tax Credit.
Payments were made to the operator of these bogus/fake firms through Bank & the same were received back in cash by the accused after deducting the commission (up to 50% of the tax value involved in the fake/goods-less invoices).
Simultaneously, the accused used to procure non-GST paid goods from small unregistered manufactures/traders without paying the GST and used to pass on the fraudulently availed ITC (as mentioned above) to his buyer.
In this way, the accused has committed offence under section 132(1)(c) of CGST Act, 2017 which is cognizable and non-bailable under section 132(5) and punishable under clause (i) of sub section (1) of Section 132 of the Act ibid. Accordingly the accused was arrested on 07.03.2020 under Section 69(1) of the CGST Act, 2017 and was produced before the Chief Metropolitan Magistrate, Patiala House Courts, where he was sent to judicial custody till 21.03.2020.Further investigation in the case is in progress.
Meanwhile, DGGI (Hqrs.) booked a case on 06.03.2020 against M/s Aastha Apparels Pvt Ltd & others. Aforesaid companies have fraudulently claimed IGST refunds on export of goods to the tune of more than Rs. 61 Crores.
It has been revealed that ITC has been fraudulently availed by M/s Aastha Apparels Pvt Ltd & others on the basis of invoices received from non-existent/non-functionalfirms/companies or from companies which have indulged in circular trading.
The said firms/companies also did not have commensurate purchases backwards. It has been further revealed that the supplier companies to these exporter companies are controlled & managed by few persons only and they are also engaged in claiming of suspect IGST refunds. Thesecompanies have created a complex web of circular trading among themselves without commensurate payments or actual supplies of goods to pass on ineligible ITC to the Exporters.
Two directors of aforesaid exporter companies have been arrested on 07.03.2020 under Section 69(1) of CGST Act, 2017 for offences under provisions of Sections 132(1)(b) & 132(1)(c) of the CGST Act 2017. Role of suppliers and other persons associated with these Exporters is under investigation.Further investigations in the matter are in progress.
