Officers of CGST Mumbai South has busted a network of fictitious firms that issued fake invoices of Bullion of approximately Rs 1,650 crore and fake Input Tax Credit (ITC) of Rs 49.7 crore, said a press release on Friday.
The accused have been remanded to judicial custody by Additional CMM Court, Mumbai.
The arrested person had created multiple bogus including Karnataka Jewellers, Balaji Enterprises, and Kismat Enterprises. These three entities had collectively availed and passed on fake ITC of Rs 29.4 crore to another entity Gajamukhi Bullion, which further passed a part of this fake ITC Rs 20.27 crore to Golden Bullion, without actual movement of goods or services. The proprietor of Golden Bullion was arrested in the past.
Detailed investigations revealed that the arrested person was creating fictitious firms at various locations including Mumbai, Belgaum and Bikaner, for monetary gains. Based on material evidence and his confession, he was arrested under Section 69 of the CGST Act for offences under Section 132(1)(b), 132(1)(c) read with Section 132(5) of CGST Act. He was produced before Additional CMM court Mumbai on February 3. He was sent to judicial custody of 14 days. Efforts are underway to apprehend other persons involved in this network.
This case is a part of Anti-Evasion drive launched by CGST, Mumbai Zone against the tax evaders. As a part of this drive, CGST Mumbai South Commissionerate has detected tax evasion of Rs 570 crore approximately recovered Rs 7 crore and arrested 7 persons during the last five months.
The CGST department is using data analysis and network analysis tools to identify potential tax evaders and also coordinating with other tax authorities for nabbing tax evaders. The department is going to intensify this anti-evasion drive in the coming days and months.
( With inputs from ANI )
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