Owners of two bogus trading companies were booked for allegedly submitting fake bills to evade GST tax to the tune of Rs 14.21 crore. The two accused allegedly claimed Input Tax Credit (ITC) with Chandigarh Excise and Taxation department even as the they did not purchase anything or receive services from other companies.
ITC is the amount deducted while paying tax on the “output product”. The deducted amount is equivalent to the money paid by a company while purchasing the raw material that went into that product. The accused were identified as Anuradha, proprietor of AK Trading Company at Khuda Jassu village, and Rajeev Kumar of Vinita Enterprises at Milk colony, Dhanas.
A police officer said, “Anuradha is a widow. The address in Khuda Jassu, where she claimed her company exist, belongs to her father. We have not found any company at the address. Her father maintained that Anuradha had used a fake rent agreement for obtaining the GSIT number. We also raided Vinita Enterprises address at Milk colony in Dhanas. No one was found there. There was no company structure. UT Excise and Taxation department is yet to give us the fake bills, invoices etc submitted by them with the taxation department.”
The Economic Offenses Wing (EOW) is conducting the probe. The two FIRs were registered on the complaints of Excise and Taxation Department. Both the accused are absconding. The two had also obtained GSIT numbers for their firms on the basis of fake rent agreements.
UT Excise and Taxation Commissioner-cum-DC Mandeep Singh Brar conducted an internal probe against five bogus companies including these two before moving a police complaint. The five companies have allegedly committed a fraud of Rs 70 crore.
Sources said internal probe against three other companies — RJ Enterprises in Makhanmajra, Mahadev Metals in Dariya and RD Trading Co in Sector 45 — are still pending.
Sources in the excise department said, “These bogus companies were registered and obtained GSIT number from UT administration for doing the business of scrap sales-purchase. The five bogus firms issued fake bills without any other company either purchasing or providing any goods or services from/to them. The bills bought by these companies, mostly situated in neighboring states were then used to claim input tax credit (ITC) from the government.”