New Delhi: The Anti-Evasion Branch of the Central Goods and Services Tax (CGST) officials, Delhi South Commissionerate have arrested the proprietor of an iron and steel trading firm for allegedly availing, utilising and passing on fraudulent Input Tax Credit (ITC) worth more than Rs 25.22 crore through bogus invoices valued at approximately Rs 140.14 crore, an official statement said on Friday.
According to a Finance Ministry statement, the action is part of an ongoing enforcement drive against fraudulent ITC claims under the Goods and Services Tax (GST) regime.
Investigations revealed that the firm had availed inadmissible ITC on the basis of invoices issued by multiple supplier firms, several of which were found to be non-existent, non-functional, suspended or cancelled, it added.
Moreover, field verification conducted by officials also established that some of the suppliers were not carrying out any genuine business activity from their declared places of business.
The probe further found that the firm had allegedly claimed ITC without the actual receipt of goods and subsequently passed on the credit to various recipients through invoices issued without any corresponding supply of goods.
Based on evidence gathered during the investigation and statements recorded, the proprietor was arrested on September 17 under Section 69 of the CGST Act, according to the government.
The accused was subsequently produced before the Patiala House Court, which remanded him to 14 days of judicial custody, it added.
The ministry said further investigation is underway to identify the full extent of the alleged GST fraud and ascertain the involvement of other entities linked to the transactions.
The CGST department reiterated its commitment to taking strict action against tax evasion and fraudulent ITC networks aimed at causing revenue losses to the exchequer.
Earlier in August, the Hyderabad CGST Zone unearthed a clandestine pan masala and tobacco manufacturing unit in Telangana’s Medchal-Malkajgiri district and detected duty and cess evasion of about Rs 160 crore and arrested a key accused.
(IANS)
