:Mumbai,November 29,2024

Central GST & Central Excise, Palghar Commissionerate arrests one person involved in availing ineligible ITC of Rs.9.39 Crores without underlying inward supply of goods and/or services and passing of this illegal ITC of Rs.5.26 Crores to the beneficiary taxpayers.The officers of Investigation Wing of Central GST Palghar Commissionerate, Mumbai Zone have intercepted one taxpayer who was involved in availing Input Tax Credit (ITC) on the basis of invoices issued by cancelled taxpayers and other suppliers, without underlying inward supply of goods and/or services. The fraudulently availed ITC works out to be of Rs.9.39 Crores. The said taxpayer was inter alia passing on such illegal ITC by issuing invoices to different beneficiary firms without making actual supply of goods and/or services. The volume of such illegal ITC passed on was worked out to be Rs.5.26 Crores.Based on extensive search operations conducted at the Principal Place of Business and residence of the taxpayer resulted in seizure of incriminating documents/records indicating that the taxpayer may be one of the members of the cartel using similar modus operandi. In the statement recorded under Section 70 of the CGST Act, 2017, the taxpayer has admitted to have availed and passed on this illegal ITC as mentioned above.Based on material evidences gathered during the search and further investigation, the taxpayer has been arrested on 27.11.2024 under the provisions of Section 69 of the CGST Act, 2017 for contravention of Section 132(1)(b) and Section 132(1)(c) of the CGST Act, 2017. Detailed investigation is underway in this case.The taxpayer is remanded to judicial custody till 10.12.2024 by the Hon’ble CMM Court, Esplande, Mumbai.

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