CGST Navi Mumbai arrests keypersons of six firms for availing input tax credit of Rs 5 crores using bogus invoices

Categories: GST Law, Press Release

The proprietor and keypersons handling the business activities of six firms have been arrested by CGST, Navi Mumbai on August 25, 2023, on the charges of availing/ utilizing/ passing on fake Input Tax Credit (ITC) which was received from bogus/fake entities amounting to Rs 5.01 Crores. The total amount of bogus invoices involved is approximately Rs. 30 crores, without actual supply of goods or services. These six firms are M/s Bluesky Trading Company (GSTIN – 27AAHHN6764P1ZA), M/s Scorpion Enterprises, (GSTIN – 27AKUPD0205A2ZR), M/s C A Traders (GSTIN – 27AOKPD3230P1ZS), M/s Amrut Traders Impex (GSTIN – 27AADHA6564L1Z4), M/s Sona Trading Company (GSTIN – AOKPD2878R1Z4) and M/s Shree Satyam Trading Company (GSTIN – 27AELPD5876Q1ZM).

A team of officers of Anti-Evasion, CGST & Central Excise, Navi Mumbai, conducted enquiry against the aforesaid firms.

These firms have availed and utilized ITC of Rs. 5.01 crores which has been received from bogus/fake entities on the strength of bogus invoices received and passed on the same.

As per the provisions of Section 132(1) (b) & (c) of the CGST Act, 2017, if taxpayer issues invoices and/or bills without supply of goods or services or both leading to wrongful availment or utilization of input tax credit, or avails input tax credit using such invoice or bill, the Section 132(1)(i) renders the taxpayer punishable with imprisonment for a term which may extend to five years and with fine. Further, as per Section 132(5) offences specified supra are cognizable and non-bailable. The above accused has been arrested under Section 69 (1) of the Central Goods and Services Act, 2017 for committal of offences under Section 132 (1)(b) & (c) of the said Act and was produced before the Judicial Magistrate First class, Vashi at Belapur today (August 25, 2023) and has been sent on judicial custody for 14 days.

This case is a part of Anti-Evasion drive launched by CGST, Mumbai Zone, against the fraudsters and tax evaders, creating unhealthy competition for compliant taxpayers and defrauding the Government exchequer, informed Commissioner, CGST and Central Excise, Navi Mumbai Commissionerate, Shri Prabhat Kumar.

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