GOVERNMENT OF INDIA
OFFICE OF THE COMMISSIONER
CENTRAL GOODS AND SERVICE TAX, VADODARA II
Room No. 5, Ground Floor, GST Bhavan, Subhanpura, Vadodara- 390023
F. No. GEXCOM/AE/INV/GST/575/2020
Vadodara Dated 21.10.2020
The officers of CGST. Vadodara-II Commissionerate of Vadodara Zone after the intensive data mining and data analysis of the suspicious taxpayers, particularly relating to the E-way Bill data, GSTR-3B data and GSTR-1 data have detected one person who himself is in the final year of Chartered Accountancy and floated more than 115 fake firms by using the IDs of villagers of Dahod and other areas located in Ahmedabad.
2. The kingpin, who hails from Ahmedabad, by floating these large number of fake firms, had issued fake invoices to generate fake Input Tax Credit amounting to Rs 50.24 Crores. This fake illegal credit was eventually passed on in chain to other fake identities by issuing fake invoices and without actual supply of goods and services.
3. The intensive interrogation of the person and after confronting him with the records and the identities, this kingpin admitted to have generated fake credit of more than Rs 50 Crores by creating the fake firms on the identities of villagers and labourers, etc. hailing from Ahmedabad and Dahod, promising them for making monthly payment in cash The CGST officers arrested the kingpin under Section 69 of the CGST Act. 2017 on 16th October, 2020, as he had committed an offence under Section 132(1)(b) of the CGST Act, 2017 Section 132 (1)(l)(i) of CGST Act. 2017 prescribes that such person could be sentenced to jail upto 5 years with fine for the said alleged offence.
4. After the arrest, the said person was examined at SSG Hospital, Vadodara and then produced before the Chief Judicial Magistrate, Vadodara, who has remanded him for the judicial custody.
5. Further investigations are in progress.
Vadodara, Date 21.10.2020
(Dr. Satish Dhavale)
Central GST & Central Excise,
Source- Unconfirmed Sources