A woman, who was working as proprietor of a dummy trading firm, was arrested on Tuesday for allegedly being involved with a fake input tax credit (ITC) racket and bogus billing.
“Intelligence was developed by Central Intelligence Unit (CIU) CGST Mumbai Zone using different data analytics tools such as Advait, E-way bill portal etc. During our investigations, we found that the firm was involved in availing and passing fake ITC amounting to Rs. 14.4 crore, involving the value of goods worth Rs 73.1 crore,” said Sumit Kumar, commissioner, CGST & Central Excise, Bhiwandi Commissionerate.
The officials conducted a visit at the address of the firm which was found to be non-existent. The initial investigation revealed that the firm had fraudulently availed excess/fake input tax credit (ITC) of Rs. 7.2 crore and subsequently passed the same amount of fake/ineligible ITC to accommodate their recipients. The accused had not produced any documents on which the said ITC is claimed and passed on.
The woman was booked under Section 69 of CGST Act, 2017, and produced before a magistrate court in Mumbai where she was remanded to judicial custody. This is the eighth arrest made in different cases by the Bhiwandi Commissionerate since August last year.