Mumbai: Maharashtra GST Department has arrested a businessman Anuj Gupta, who is the proprietor of Sawy Fabrics, from his Vile Parle residence in connection with the tax default. This is the third major arrest since November last year.
Gupta, who owns five firms of which, Savvy Fabrics, Shiv Textiles and Shakti Textile were registered under Maharashtra Goods and Services tax Act, 2017. Two other firms Subhlene Fabrics and Shubhmangal Textiles Industries were registered in the Union Territory of Dadra Nagar Haveli.
According to the Maharashtra GST department, these five firms have shown estimated bogus purchases of more than Rs 272 crore and thereby availed of bogus input tax credit of over Rs 31 crore without actually buying any goods or services. Two firms located registered at the UT Dadra Nagar Haveli have received a refund of ore than Rs 11 crore from the government.
During the department’s investigation done with the help of Dadra Nagar Haveli GST personnel, it was observed that these companies physically possess only 20% of the total stock value that was claimed by them to be in their possession, and the remaining 80% stock was no actually found to be with them. Various transporters have also deposed before the department and clarified that they have not transported any goods as show in their name by five companies.
Gupta was produced before the court of additional chief metropolitan magistrate who has sent the former for 14 days judicial custody. The department argued that offences committed by Gupta were cognizable and non bailable which attract a punishment of imprisonment up to 5 years with fine as per the GST Act, 2017.
The department has warned the errant tax payers and appealed to comply with tax laws.