New Delhi, Aug 3 Delhi businessman Karan Kumar Aggarwal was on Wednesday arrested by officials of CGST, Delhi West, for fraudulently availing ITC of around Rs 8 crore.
An official said that on the basis of an alert, an investigation against Niyati Steels was undertaken by the CGST's Delhi West Commissionerate.
The official said Aggarwal, in his voluntary statements, has admitted that he looks after all day-to-day transactions and operations of the said firm, which availed ITC of Rs 7.7 crore from non-existent entities.
Through further inquiry and the use of analytical tools, it was found that six more firms were linked with Aggarwal. These firms on the strength of goods-less invoices worth Rs 292 crore, have collectively availed ineligible/inadmissible Input Tax Credit (ITC) of more than Rs 52 crore from non-existent entities.
Agarwal has admitted in his voluntary statement that he has used his Aadhar for authentication in all these six firms and has issued goods-less invoices without receiving any goods in some of these firms and he is also involved in sale of goods-less invoices for commission of 3 to 4 per cent of the taxable value of the invoices.
In view of his own admission of his involvement in availment of ineligible/ inadmissible ITC and substantiated by data analytics, Agarwal was arrested for offences under section 132 of the CGST Act, 2017 read with section 69 of the Act.
He was later sent to 14 days judicial custody by a magistrate's court.
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