GST

Gurugram Zone DGGI arrests two businessmen for fraudulent ITC issuance of around Rs 40 crores

Gurugram Zone DGGI arrests two businessmen for fraudulent issuance of around Rs 40 crores of input tax credit 

Gurugram Zonal Unit of the Directorate General of GST Intelligence (DGGI) has arrested two businessmen, namely, Sh. Anil Kumar Jain of M/s Jatalia Global Ventures Ltd, Delhi, and Sh. Manoj Garg of M/s Manoj Cables Ltd. Delhi, today in a case of fraudulent issuance of Input Tax Credit invoices without actual supply of goods, involving GST evasion of approximately Rs 40 crores on the taxable value of concocted supplies of Rs 210 crores. This action was a followup of similar detection of evasion of Rs 79.21 crores on taxable value of Rs 450 crores in the case of M/s MICA Industries Ltd., Delhi, M/s Satellite Cables Pvt. Lld., Bhiwadi and M/s Galaxy Metals Products in which three businessman were arrested on 14.09.2018, against whom prosecution under the GST Act has since been launched by the Department.

 This quantum of evasion and the gravity of the offence committed by Sh. Anil Kumar Jain of M/s Jatalia Global Ventures Ltd. and Sh. Manoj Garg of M/s Manoj Cables Ltd is cognizable and non bailable under the CGST Act, 2017 under the provisions of sub section (5) of Section 132 (1). Thus, both of them were arrested under Section 69 (1) of the CGST Act,2017 and produced before the Hon’ble Judicial Magistrate 1st Class (JMIC), Gurugram who remanded both to 14 days judicial custody.

In the course of investigation searches were conducted at several places during which various incriminating documents were found which evidenced issuance of fake bills/invoices in a Circular manner among the said companies without any concomitant movement of goods for such transactions thereby proving wrongful availment and utilization of fake input tax credit. The arrested persons have agreed to the same.

Further investigations are underway and the quantum of evasion is likely to go up. Officers are not ruling out the possibility of existence of several other firms which may be involved in this nexus

Source: PIB

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