Mumbai: Businessman held for Rs 35 crore ITC fraud

According to the Central Goods and Services Tax (CGST) officials, information was received that a Kharbased company is involved in fraudulent availing of ITCs.

Somendra SharmaUpdated: Tuesday, July 05, 2022, 08:56 AM IST
article-image
Mumbai: Businessman held for Rs 35 crore ITC fraud | Representational Image

The Directorate General of the Goods & Services Tax Intelligence department has arrested a businessman for allegedly having fraudulently availed ineligible Input Tax Credit (ITC) amounting to approximately Rs 35.11 crore on the strength of bogus invoices, without actual receipt of goods or services as mentioned in the respective invoices.

According to the Central Goods and Services Tax (CGST) officials, information was received that a Kharbased company is involved in fraudulent availing of ITCs.

During the course of investigations, it was learnt that the proprietor of the firm had been detained by the Bengaluru Unit of the Directorate of Revenue Intelligence in a COFEPOSA Act related case.

“Therefore, after taking due permissions, the statement of the suspect was recorded under provisions of the CGST Act on May 5,” a CGST official claimed, adding that the depositions made by him appeared to be factually incorrect and contradictory to the evidence gathered during the investigation.

According to the official, it has been established from the investigations that the major suppliers of the 14 companies/firms of the businessman have not received any goods or services and had fraudulently availed ineligible ITC. “Despite a reasonable period of over 24 months having lapsed since the initiation of the investigation, the businessman had not provided the documentary evidence and records sought by the CGST office,” he said.

As per CGST officials, the offence allegedly committed by the businessman is of a very serious nature, having revenue implications, and the law has made it cognisable and non-bailable with the intention of preventing companies from indulging in such types of transactions. The businessman was arrested on Saturday by the CGST and produced before a local court.

“My client has given full cooperation to the officers and has disclosed all details. He is unnecessarily being harassed by the officers in a false case,” advocate of the accused, Ravi Hirani said.

(To receive our E-paper on whatsapp daily, please click here. To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

RECENT STORIES

Five things you can do as an international student in Sheffield, UK

Five things you can do as an international student in Sheffield, UK

JEE Mains Results 2022: Toppers from states across India define their paths to success

JEE Mains Results 2022: Toppers from states across India define their paths to success

Mumbai: Man claiming to be fixer held for taking money from Salim Fruit

Mumbai: Man claiming to be fixer held for taking money from Salim Fruit

Panvel tehsil starts sales centre for national flags at nominal price

Panvel tehsil starts sales centre for national flags at nominal price

Mumbai: Modak Sagar overflows for second time

Mumbai: Modak Sagar overflows for second time