CGST Navi Mumbai arrests a lady director for fake input tax credit
Mumbai (Maharashtra) [India], September 7 (ANI): CGST, Navi Mumbai, on Wednesday arrested a lady director handling the business activities of Robosteel Trading Pvt Ltd for involvement in fake Input Tax Credit (ITC).
ANI
Sep 07, 2022 20:02 IST
Mumbai (Maharashtra) [India], September 7 (ANI): CGST, Navi Mumbai, on Wednesday arrested a lady director handling the business activities of Robosteel Trading Pvt Ltd for involvement in fake Input Tax Credit (ITC).
According to an official statement released by the Union Ministry of Finance, the lady director has been arrested by CGST, Navi Mumbai on the charges of availing/utilizing/passing on fake Input Tax Credit (ITC) received from bogus/fake entities amounting to Rs 182 crore on the strength of fake invoices of Rs 1075 crore.
A team of officers of anti-evasion, CGST & C.Ex. Navi Mumbai conducted enquiry against the aforesaid firm. The said firm has availed and utilized ITC of Rs 181.67 crore which has been received from bogus/fake entities on the strength of bogus invoices received and passed on the same. The total amount of bogus invoices involved is to the tune of Rs 1075 crore, without actual supply of goods or services, the ministry said.
As per the provisions of Section 132(1) (b) & (c) of the CGST Act, 2017, if taxpayer issues invoices and/or bills without the supply of goods or services or both leading to wrongful availment or utilisation of input tax credit, or avails input tax credit using such invoice or bill, the Section 132(1)(i) renders the taxpayer punishable with imprisonment for a term which may extend to five years and with fine. Further, as per Section 132(5) offences specified supra are cognizable and non-bailable.
The above accused has been arrested under Section 69 (1) of the Central Goods and Services Act, 2017 for committal of offences under Section 132 (1)(b) & (c) of the said Act and was produced before the Judicial Magistrate First class, Vashi at Belapur on 07.09.2022 and has been sent on judicial custody for 14 days.
This case is a part of an anti-evasion drive launched by CGST, Mumbai Zone against fraudsters and tax evaders, creating unhealthy competition for compliant taxpayers and defrauding the Government exchequer. As a part of this drive, Navi Mumbai Commissionerate has detected tax evasion of Rs 600 crore, recovered Rs 20 crore and arrested 18 persons recently. (ANI)
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