On 18^th August 2022, the Proprietor/mastermind handling the business activities of M/s Mass Steel Traders (GSTIN:27BONPS7020E1ZS), M/s S.K. Enterprises (GSTIN:27DBKPK2919Q1Z1), M/s M K Traders (GSTIN:27AOBPK2775F1ZZ) & M/s. Niyaz Enterprises (GSTIN:27CJKPS3682K1ZF) has been arrested by CGST, Navi Mumbai on the charges of availing/ utilizing/passing on fake Input Tax Credit (ITC) which was received from bogus/fake entities amounting to Rs 22.38 Crores (Availed Rs.11.19 Crores and passed on Rs.11.19 Crores).

A team of officers of Anti-Evasion, CGST & C.Ex. Navi Mumbai conducted enquiry against the aforesaid firm. The said firm has availed and utilized ITC of Rs. 11.19 crores which has been received from bogus/fake entities on the strength of bogus invoices received and passed on the same. The total amount of bogus invoices involved is to the tune of Rs.125 crores, without actual supply of goods or services.

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 on 18.08.2022 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. As a part of this drive, Navi Mumbai Commissionerate has detected tax evasion of Rs 500 Crore, recovered Rs. 20 crores and arrested 17 persons recently.

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(Source: CGST Bhiwandi Commissionerate)

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