In a major crackdown, the Central Goods and Services Tax (CGST) officials in Navi Mumbai apprehended the proprietors and key figures involved in the operations of six firms on charges of manipulating Input Tax Credit (ITC) through fake invoices. The alleged scam involves a staggering amount of Rs 5.01 Crores, acquired from bogus and fictitious entities.
The illicit activities of these firms have led to approximately Rs. 30 crores worth of bogus invoices circulating, without any actual exchange of goods or services. The six companies under investigation are M/s Bluesky Trading Company, M/s Scorpion Enterprises, M/s C A Traders, M/s Amrut Traders Impex, M/s Sona Trading Company, and M/s Shree Satyam Trading Company.
An intensive inquiry was conducted by a team of Anti-Evasion officers from CGST & Central Excise, Navi Mumbai, revealing the extent of the manipulation. These firms exploited the fake invoices to avail and use ITC amounting to Rs. 5.01 crores.
The accused individuals from these firms were arrested under the provisions of Section 69 (1) of the Central Goods and Services Act, 2017. They are charged with offenses under Section 132 (1)(b) & (c) of the same Act. The accused were produced before the Judicial Magistrate First class in Vashi at Belapur on August 25 and were subsequently remanded to judicial custody for 14 days.
Prabhat Kumar, Commissioner of CGST and Central Excise, Navi Mumbai Commissionerate, highlighted that this operation is a part of the larger Anti-Evasion drive launched by CGST, Mumbai Zone. The drive is aimed at combating fraudulent practices that not only disrupt a level playing field for compliant taxpayers but also lead to financial losses for the government exchequer.
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