The Officers of Anti-Evasion wing of CGST CX Delhi East Commissionerate has arrested two persons namely Sh. Naresh Goel and Sh. Anil Kumar Yadav residents of New Delhi who were found involved in fake invoices racket having a taxable value of goods to the tune of Rs. 211 crore and fraudulently passing/ availing Input Tax Credit (ITC) amounting to Rs. 33 crore through a complex web chain of various entities/fake firms, thereby causing loss to govt exchequer by evasion of GST.
They availed the fraudulent ITC from the fake firms and passed on this ITC to the firms for covering the GST liability of the goods being sold clandestinely. During the course of the investigation conducted so far, all the firms from which the companies of both the person availed ITC were found non-existent.
Preliminary investigation revealed the bogus entities were merely on paper and these bogus entities were floated in several layers to create a complex network of transactions among themselves, including the transfer of money in bank accounts to make them appear genuine. This enabled them to make fake invoices to reach the manufacturers in these cases, who avail the fraudulent input tax credit without receipt of goods in question. Both the person also admitted that no actual movement of goods was taken place against the fake invoices issued by them or received by the same was corroborated via e-way bill data.
Thus, Sh. Naresh Goel and Sh. Anil Kumar Yadav has committed offences under the provisions of Section 132(1)(b) & (c) of the Central Goods &, Services Tax Act (CGST), 2017, which are cognizable and non-bailable offences and punishable under Section 132 of the CGST Act, 2017. Consequently, Sh. Naresh Goel and Sh. Anil Kumar Yadav was arrested on 29th January, 2020 under Section 69(1) of the CGST Act, 2017 and produced before Chief Metropolitan Magistrate (CMM) in Patiala Court on 29th January, 2020. Court has sent them to judicial custody for 14 days. Further investigation in the matter is in progress and action is being initiated to recover the fraudulent ITC availed by the beneficiaries for discharging their GST liability.
