Cuttack: The State Goods and Services Tax (GST) Enforcement Wing has successfully busted a racket involved in alleged GST input tax credit (ITC) fraud to the tune of Rs 311.03 crore with the arrest of five persons on Wednesday.
The racket involving bogus bills and bogus ITC of 24 fake firms was busted on the basis of information secured during raids conducted earlier and analysis of data.
The operation involved 48 tax officials spread in 12 teams and 35 police personnel which led to the arrest of the five masterminds.
The accused masterminds have been identified as Dhanwan Shaw, Ram Bharose Shaw, Manoj Kumar Pandey, Subash Kandulna and his associate Niku Singh alias Chhatar Singh.
“Dhanwan Shaw, Ram Bharose Shaw and Manoj Kumar Pandey are current or former directors of three companies M/s Swastik Ingot (P) Ltd, M/s Sunaina Metal Industries Ltd, and M/s Sairam Ingot (P) Ltd all located in Rourkela, while Subash Kandulna is the proprietor of M/s Subash Traders of Pamra village under Badgaon police station limits of Sundargarh district and Niku Singh alias Chhatar Singh of Basanti Colony Rourkela is his (Kandulna’s) associate,” informed State GST Commissioner Sushil Kumar Lohani addressing a presser here today.
Lohani said that the accused were arrested on allegations of misappropriating and transferring bogus ITC to the tune of Rs 311.03 crore on the basis of bogus bills (invoices) of Rs 1717.91 crore.
They were arrested under section 132 (1)(b)(c) and 132(5) which is a cognisable and non-bailable offence, he added.
“The five masterminds apart from their own company by creating 23 bogus firms were evading tax through bogus transactions and transfer of ITC to others. There was no actual sale or purchase of goods in the transactions. It was only on paper causing revenue loss to the State,” the GST Commissioner stated.
