CGST Ghaziabad arrested 2 persons including the proprietor, of the firms involved in GST fraud of taxable value of Rs. 96.84 Cr and availment and utilization of fake ITC of approx. Rs. 5.15 Cr.
PRESS NOTE
CENTRAL GST COMMISSIONERATE, GHAZIABAD ARRESTS TWO PERSONS INVOLVED IN GST FRAUD OF TAXABLE VALUE OF RS. 96.84 CRORES AND AVAILMENT AND UTILIZATION OF FAKE INPUT TAX CREDIT OF RS. 5.15 CRORES (APPROX.)
On the basis of information shared by Chief Commissioner Office, CGST & Customs, Meerut Zone, Meerut, CGST Commissionerate, Ghaziabad conducted a series of searches on 25.02.2022 and 02.03.2022 at eight (08) premises located at Ghaziabad, Delhi, Gautam Buddh Nagar related to M/s Natraj Paper Mills, M/s Rajeshwari Paper Mills, M/s Ganga Paper Mills, M/s Sharma Enterprises, M/s Kanha Paper Mills.
2. This led to unearthing of a GST fraud involving taxable value of Rs. 96.84 Crores and availment and utilization of fake Input Tax Credit (ITC) of Rs. 5.15 crores (approximately) involving 5 firms. During the investigation, one of the proprietors of the above mentioned firms Sh. Sandeep and his accomplice Sh. Sumit Kaushik were also located. Based on their statements as recorded and scrutiny of documents and emails of Sh. Sumit Kaushik, it was revealed that they had floated around forty (40) firms in multiple jurisdictions all over India including five firms where searches were carried out, by way of misusing the credentials of their relatives for the purpose of availment/issuance of fake ITC without any concomitant supply of goods. Quantum of GST evasion is likely to go up.
3. Thereafter, Sh. Sumit Kaushik and Sh. Sandeep allegedly involved in creation of fake/bogus firms for the availment and utilization of fraudulent Input Tax Credit (ITC) on the strength of invoices without receipt of any goods, were arrested on 03.03.2022 under Section 69 of the CGST Act, 2017 for the offences committed under provisions of Section 132 of CGST Act. They were produced before the court of Special CJM, Meerut on 03.03.2022 who ordered for their judicial custody till 16.03.2022.
(Rakes Gupta)
Additional Commissioner
Central GST:: Ghaziabad
