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Mumbai: Businessman arrested over fake ITC of Rs 10 crore

The Mumbai west zone CGST commissionerate said it arrested the director of Necil Metal Dealers Pvt Ltd, based on the inputs of its central intelligence unit after it found the company had availed and passed off ITC to the tune of Rs 10 crore without receiving any goods or services.

By: Express News Service | Mumbai |
January 20, 2022 11:38:40 pm
According to a statement by the tax department, the arrested businessman was produced before a local court Thursday and remanded to judicial custody till February 2.

The Central Good and Services Tax (CGST) commissionerate has arrested a Versova-based businessman for allegedly claiming and passing off fake input tax credit (ITC) of Rs 10 crore through his firm.

The Mumbai west zone CGST commissionerate said it arrested the director of Necil Metal Dealers Pvt Ltd, based on the inputs of its central intelligence unit after it found the company had availed and passed off ITC to the tune of Rs 10 crore without receiving any goods or services. This, the tax authority said, is in violation of the provisions of CGST Act 2017.

According to a statement by the tax department, the arrested businessman was produced before a local court Thursday and remanded to judicial custody till February 2. Necil Metal Dealers is a registered trader of ferrous waste and scrap.

“The director was arrested under Section 69 of CGST Act 2017 for contravention of Section 132 of CGST Act 2017 and produced before the Chief Metropolitan Magistrate, Esplanade, Mumbai today and who has remanded him to 14 days’ judicial custody till February 2, 2022,” said a statement by the department.

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The CGST authority said its investigation in Necil Metal is “part of a large-scale effort by CGST Mumbai zone to stamp out fake ITC networks”. It said the Mumbai west zone of CGST alone has unearthed fake ITC amounting to Rs 187.20 crore and recovered Rs 13.25 crore in the past six months.

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