The Anti Evasion Wing of CGST, Gandhinagar commissionerate has arrested Shri Darshan Dinesh Patel and Shri Akshay Dinesh Patel both directors of M/s. Zikshoo Impex Pvt Ltd, who were found involved in generating fake invoices and fraudulently passed/ availed Input Tax Credit amounting to Rs 40 Crores (approx.) through assistance of web chain of various entities with total invoice value of Rs. 604 Cr.
Both the persons (Brothers) were operating various firms in their own name and other persons names registered at various places, availing ITC credit on the strength of fake invoices and also in turn passing ITC credit on the Strength of fake invoice without supply of goods. They have indulged themselves in illegal procurement of Invoices from various firms based at Delhi and other States and fraudulent availment and passing of such ITC fraudulently to other firms situated at various states without any actual supply of goods and also played a significant role in receiving only invoices without receipt of any goods.
Shri Darshan Dineshbhai Patel and Shri Akshay Dinesh Patel, had masterminded the entire episode and have been involved in the issuance of fake bills/invoices to its clients in need of such documents just to avail ITC on the strength of such documents without the supply of any goods to earn commission ranging from 3 to 3.5 percent for various goods and .40 percent for passing of ITC fraudulently on supply of gold invoices. Many signed cheque books were found at their premise for withdrawal of cash and huge cash withdrawal was noticed in their bank statement, which in turn sent to different places through hawala. From the record available and investigation done so far, ITC to the tune of Rs 40 Crores has been illegally passed on.
Shri Darshan Dinesh Patel and Shri Akshay Dinesh Patel both directors of M/s. Zikshoo Impex Pvt Ltd were arrested on 23.12.2019 as per the provisions of Section 69 of the CGST Act, 2017 as there are enough reasons to believe that they are guilty and mastermind of offences punishable under Section 132(1)(i) of the CGST Act, 2017 and produced before Judicial Magistrate in Ahmedabad Court on 24th December, 2019. The court has sent them to judicial custody.
Further investigation in the matter is in progress.
Dr. Jeetesh Nagori