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Surat Commissionerate have unearthed a case of generation, availment and passing of fraudulent ITC

Acting upon an Intelligence received from PCCO, Vadodara Zone, officers of the Central GST & Central Excise, Surat Commissionerate have unearthed a case of generation, availment and passing of fraudulent ITC made by an intricate web of numerous Surat based firm. Preliminary investigation so far has revealed a network of 13 firms dealing in goods-less invoices wherein total fraudulent ITC availed is Rs. 17.81 crore and passed on ITC amounting to Rs. 15.76 crore. Thus, total ITC involved in the matter is Rs. 33.57 Crore. Further investigation reveals that two such firms had the same address as registered principal place of business, which was found to be the residential premises of proprietors of above firms. The proprietors are related as mother and son.

        Both these firm are being operated by the son, supra, who has created these two bogus firm which were involved in issuance of goods-less invoices for availment of fake ITC. He has further passed on such fraudulent ITC to various other taxpayers located in Gujarat, Rajasthan and Delhi, Data analysis has revealed that so far these two firms have availed ITC to the tune of Rs. 6.70 crore. and passed on ITC to the tune of Rs. 4.59 crore.

The perpetrator has admitted to the same under his voluntary statement.

      The evidences gathered during investigation make it evident that the perpetrator has committed offence as provided under Section 132(1)(b), (c) and 132(5) of the CGST Act, 2017, which is punishable with imprisonment for a term which may extend to 5 years and with fine. Such offences are cognizable and non-boilable and therefore, he has been arrested on 07.09.2021 under section 69 of the CGST Act. 2017.

    Further investigation in the fake ITC racket is in progress.

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