The Preventive wing of CGST Ahmedabad South, Commissionerate, has initiated investigation against M/s. Jaymin Enterprise engaged in trading of scrap, in respect of fraudulent availment of ITC without actual receipt of goods on the basis of invoices issued by eight non-existent firms.

2. During the investigation, Shri Jaysukhbhai Manubhai Modasiya, aged 46 yrs, proprietor of M/s JayminEnterprise and Shri Jignesh Mansukhbhai Patel, aged- 39 years , Managing person of M/s Jaymin Enterprise have been arrested on 22.05.2023 for availing ineligible input tax credit of Rs. 7,33,81,622/- on invoices worth approximately Rs. 40,76,75,677/- without underlying supply mentioned therein.

3. Shri Jaysukhbhai Manubhai Modasiya and Shri Jignesh Mansukhbhai Patel in connivance with their other associates, masterminded the fraud and have been actively involved in the receipt of invoices without actual receipt of goods and utilizing input tax credit of Rs. 7,15,41,284/- to discharge their GST liability. The purchase was merely on paper and the transporters in their statements have confirmed that they have not supplied any goods to M/s Jaymin Enterprise and their vehicle numbers were used fraudulently to generate e-way bill without their consent. Statement of Shri Jaysukhbhai Manubhai Modasiya and Shri Jignesh Mansukhbhai Patelwere recorded wherein they interalia confessed that M/s Jaymin Enterprise has not received any goods from these firms and have received only invoices and input tax credit on the basis of invoice issued by these firms were availed and further utilized to discharge the GST liability of outward supply of M/s Jaymin Enterprise.

4. Shri Jaysukhbhai Manubhai Modasiya, proprietor of M/s Jaymin Enterprise and his associate, Shri Jignesh Mansukhbhai Patel were arrested on 22.05.2023 under Section 69 of the CGST Act, 2017 for committing offence under relevant provisions of Section 132 of CGST Act 2017. Both were produced before the Hon’ble Additional Chief Metropolitan Magistrate Court, Ahmedabad today on i.e. 23/05/23 and sent to judicial custody till 06.06.2023 .
5. 5. Further, All India Special Drive against Fake GST registrations is currently being conducted to detect Suspicious/ Fake registrations . The CGST, Ahmedabad South Commissionerate is actively monitoring syndicates and groups involved in fraudulent availment and utilization of input tax credit involving non-existent & fictitious firms which leads to major evasion of GST .

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