Indore: Customs, central excise and service tax department on Friday conducted search at a firm and nabbed its director who allegedly was “purchasing” fake sugar bills to evade tax. According to sources, Deepak Agrawal of Shrihari Enterprise located in Loha Mandi was running a racket to mislead CGST and evade tax. With help from some fake companies, he was running this racket and evaded taxes worth Rs 70 crore.
On a tip off, CGST team swooped on Shrihari Enterprise on Monday and found documents confirming that Agrawal was running a racket. Sources said that sugar from mills goes to stocker, from whom sweets shops and others purchase it. As they make item from sugar they have to pay high GST on sale of product.
To evade this, they purchase sugar but take bill of low quantity so that when product of sugar is made they do not have to pay high tax. But the stocker has to show bills for the total quantity of sugar he sold.
Agrawal used to take bills from the stocker on very low price and showed those bills among many fake companies. Sources said that they have got documents of nearly 10 fake firms from the office of Shrihari Enterprise. The officials are going through the documents
