CGST Navi Mumbai Commissionerate busts fake IT racket worth around Rs 21 crore, 1 arrested
The Central Goods and Services Tax (CGST) Commissionerate, Navi Mumbai on Wednesday busted a fake ITC racket worth around Rs 21 crore and arrested the owner of Shri Ram Enterprises.
According to the CGST Commissionerate, the firm was engaged in availing, using and passing a bogus Input Tax Credit (ITC) on fake invoices of around Rs 100 crore, thereby duping the exchequer.
CGST Commissioner, Prabhat Kumar said that a team of officials from Anti-Evection, CGST, Navi Mumbai conducted an inquiry against the said firm. According to Prabhat’s statement, the owner is involved in the business of scrap of iron and other metals.
“However, investigation has revealed that the taxpayer has availed and passed fraudulent ITC from various non-existing/fake firms,” Prabhat said.
The CGST Commissioner also stated that the accused has been arrested under section 69(1) of the Central Goods and Services Act, 2017 for having committed the offense under section 132(1)(b) and (c) of the said Act and was introduced earlier. Judicial Magistrate First Class, Vashi has been sent to 14-day judicial custody at Belapur on Wednesday.
According to the CGST commissioner, the case is a part of the anti-evasion campaign launched by CGST, Mumbai Zone against fraudsters and tax evaders who create unhealthy competition for compliant taxpayers and cheat the exchequer. He further added, “As a part of this drive, Navi Mumbai Commissionerate has detected tax evasion of around Rs 500 crore, recovered Rs. 20 crore and recently arrested 13 people.”
Prabhat also discussed the investigation process where he said that the CGST department used data analysis tools to identify tax evaders. He further said that by using data analysis and network analysis, CGST Mumbai zone authorities have registered more than 625 tax evasion cases in the last five months, detected tax evasion of Rs 5500 crore, recovery of Rs 630 crore. and arrested more than 50 people. ,
The CGST commissioner also said, “The CGST department is going to intensify the campaign against fraudsters and tax evaders who are creating unfair competition with honest taxpayers and depriving the exchequer of their rightful revenue in the coming days and months.” are cheating.”
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