Ministry of Finance

CGST Mumbai (south) makes an arrest for availing fake ITC of amount 21.74 Crores

Posted On: 30 DEC 2021 7:55PM by PIB Mumbai

Mumbai: 30 December 2021

Central Goods and Service Tax (CGST), Mumbai South has arrested proprietor of M/s. New Laxmilal & Co. (GSTIN 27ACAPS6257K1Z5) registered at Girgaon, Mumbai for availing and passing fake Input Tax Credit (ITC) amounting to Rs. 21.74 Crores. He was produced before the ACMM Court, Mumbai on 29.12.2021 and has been remanded to 14 day’s Judicial Custody by the Court.

A team of officers of Anti-Evasion, CGST, Mumbai South conducted inquiry against the said firm, which was involved in trading of copper and metal scrap. During the inquiry it was found that the firm had been availing fraudulent Input Tax Credit based on bogus invoices from non-existent suppliers namely M/s Nakshatra Impex, M/s Bhavna Impex, M/s Labdhi Impex, M/s Rishabh Trading, M/s Bharat Industries, M/s Signature Enterprises, and M/s Connect Steel India. The proprietor of the said firm has accepted that he has availed and passed on fake ITC to the tune of Rs.11.07 Cr. without movement of goods. He was also found to be involved in availing and passing on fake ITC to the tune of Rs.10.67 Cr. in another company i.e. M/s. Laxmilal & Co. (GSTIN 27AJLPJ7761P1ZB), also registered in CGST Mumbai South. He has accepted the total GST liability of Rs. 21.74 Cr.

As per Section 132 of CGST Act 2017, issuance of an invoice or bill without supply of goods or services and wrongful availment or utilization of Input Tax Credit is a cognizable and non-bailable offence if the amount is over Rs. 5 Crore. The accused has been arrested under Section 69 of Central Goods and Service Tax Act, 2017 for committal of offences under Section 132(1)(b) & (c) of the said Act.



RT/PM source: CGST, Mumbai (South)

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