The Central Goods and Services Tax (CGST) Department Vadodara has cracked down the racket of fake invoices worth 100 crores.
Acting on the Intelligence that one Mr. Manmohan Agrawal and his son Mr. Naman ManMohan Agrawal had been engaged in the business of issuance of fake invoices without actual movement of goods to generate the Fraudulent Input Tax Credit (ITC), the officers of CGST. Vadodara-II Commissionerate, Vadodara Zone searched the principal place of business of the same duo.
The investigation revealed that Mr. Manmohan Agrawal and his son had created B fake firms, which were located in Vadodara, Mumbai, Hyderabad, and Bangalore. They were receiving fake invoices from other firms, and in tum, were passing On the fake Input Tax Credit (ITC) using 8 such fake firms generated.
The investigation further received that the fake firms located in Mumbai, Hyderabad, and Bangalore utilized the fake Input Tax Credit (ITC) in tax payment of goods purchased from registered/ unregistered taxpayers who removed their goods clandestinely.
Further, to validate the receipt and supply, they had generated an e-way bill using 7 trucks which were stationed at the single place (additional place of business) and had not moved. The investigation so far has revealed that they issued and received fake invoices to the tune of Rs.100 crores and availed, utilized and passed on fraudulent Input Tax Credit(ITC) to the tune of Rs.15 Crores.
Mr. Naman Manmohan Agrawal was arrested at Vadodara on 24.02.2020 In violation of the CGST Act and Rules framed thereunder and under section 69 of the CGST Act, 2017 and has been produced before the Special Chief Judicial Magistrate, Vadodara who had remanded him to the Judicial Custody. Further investigation is in progress.
