Officers of Anti-Evasion wing of Medchal Central GST Commissionerate booked yet another offence case of fake invoices and evasion of GST against M/s. Aavya Enterprises, who had taken fraudulent input tax credit (ITC) based on ‘Fake Invoices’ received from 9 different firms/entities located in Kolkota and Hyderabad, without actual receipt of goods.
The fraudulent ITC taken was utilized by M/s. Aavya Enterprises for evasion of GST payable by them on their supplies of Aluminum / MS/ Copper Scrap, which were procured from open market unregistered suppliers, when the said metal scraps are sold/supplied to manufacturers of Aluminum/MS/Copper- Rods/Ingots/ Castings etc. Thus, the offence involved falls under Sec. 132(1) (c) & Sec 132(5) of CGSTA, a cognizable & non-bailable offence, attracting inter alia, the provisions for arrest under Sec. 69 of CGSTA. This case against M/s. Aavya Enterprises, is in continuation to the cases registered against four firms/entities viz: Hindustan AAC Products; Aitri Engineers & Contractors Ltd; Sri Krishna Castings; Shree Metals, as reported on May 23, 2019. The total amount of fraudulent ITC taken based on the fake invoices and in turn utilized evade GST by M/s. Aavya Enterprises, is Rs. 5.76 Cr.
The total value of goods involved in this bunch of cases is about Rs. 143 Crore and the total fraudulent ITC involved is Rs. 25.74 Cr. Amit Mittal Proprietor of M/s. Aavya Enterprises was arrested on Thursday and he was remanded for 14 days. Two persons arrested earlier are denied of bail by the Special Judge of Economic Offences court. Investigation is in progress to trace further leads to identify other firms involved in the fake invoice racket, according to Principal Commissioner M. Srinivas.