The Raigad wing of the Central GST and Central Excise Commissionerate reportedly unearthed Rs 650 crore tax evasion by using fake invoices showing the supply of goods and GST payment of about Rs 110 crore.
In connection with this, one Mr. Anand Mangal was arrested and sent to judicial custody until March 8 by a local court in Panvel, while another accused, Rakesh H Garg, is absconding.
It is told that Garg is a director with Surya Ferrous Alloys Private Ltd, a Navi Mumbai based company involved in the manufacture of basic iron and steel. The tax department has recovered Rs 17 crores of cash during the search.
“The duo has been booked under Section 132 of the CGST Act. While Mangal has been arrested, Garg is absconding”, Shrawan Kumar, Commissioner, CGST, Raigad, told ET.
Reports said that the sources said fake invoices were allegedly raised by floating a number of shell companies in the name and style of M/s Moksha Alloys Pvt Ltd, M/s Latisha Sales Agencies Pvt Ltd, M/s Cumong Ispat Pvt Ltd, M/s Aahan Ispat Pvt. Ltd, and M/s Tilibandha Sales Agencies and others.
“These firms do not exist and were created on paper only. There has been no actual supply of goods by these companies, but only invoices showing supply of goods worth Rs 650 crore and showing GST payment of about Rs 110 crore have been created in the favor of above-accused firms with a view to enabling availment of input tax credit (ITC) on the basis of these fake purchases,” an official in know of the development told ET.
