The Central Goods and Services Tax (CGST) enforcement squad from Vadodara on Friday raided two firms based in Dahod and booked its owner for evading taxes to the tune of Rs 22.73 crore. Acting on a specific intelligence, the officers conducted a search on the premises of Siddhivinayak Trading Co. and Manish Trading Co. in Rabdal in Dahod.
During the raid, it was learnt that the accused, Badri Prasad Dubey, is the proprietor of Siddhivinayak and authorised signatory in Manish Trading Co. Apart from that he is also associated with four more firms as a partner including Praful Trading Co., Dhananjay Trading Co., Shiv Steel Rolling Mill and is the managing director of Vrajeshwari Steel Private Limited.
Dubey was booked under relevant sections of the CGST Act after it was found that he was the key person partner, director, authorised person, in all the above firms and was handling day to day work of all these firms and on his direction all the activities related to evasion of GST were being conducted. According to the CGST officials, all of these firms were found to be operating from the same premise and were involved in purchasing of scrap from railway and engaged in trading and manufacturing of scrap and Mild Steel Ignot/bar.
During the investigation, it was found that the firms were involved in evasion of GST by not paying the leviable tax on their outward supply and have passed on the input tax credit (ITC) which was actually not paid to the government exchequer. It was also found that the firms have not paid the leviable GST on the purchase of the crap from Railways under Reverse Charge Mechanism, a release from the CGST office of Vadodara stated. Of the total value of tax evasion, Rs 6.73 crore was recovered during the investigation itself.
Keeping in view the contagion nature of the Covid-19 pandemic, the accused has been sent for medical examination. He will be produced before the Chief Judicial Magistrate of Vadodara after discharge from the hospital.