Two avail ITC worth Rs 15 cr showing fake papers, held
Sources said, the intelligence department of DGGI of Surat unit was tipped about Five Star Ispat Pvt Ltd. at Vapi in Valsad being involved in fraudulent activity to avail ITC by using fake documents and bogus firms without actual receipts of goods. Shakir is the director of the company, while Akbar a former director.
2 min read
Akbar, a resident of Bhimrad area, and Shakir, from Unn area in Surat city, were booked under Central Goods and Services Tax Act sections 132(1) (c), 13(1) (I).
Director General of Goods and Services Tax Intelligence (DGGI) has arrested two men for using fake documents showing financial transactions to the tune of Rs 88.29 crore and claiming Input Tax Credit (ITC) of Rs 15.85 crore. The accused, Shaikh Akbar and Saiyed Shakir, were sent to judicial custody on Wednesday.
Akbar, a resident of Bhimrad area, and Shakir, from Unn area in Surat city, were booked under Central Goods and Services Tax Act sections 132(1) (c), 13(1) (I).
Sources said, the intelligence department of DGGI of Surat unit was tipped about Five Star Ispat Pvt Ltd. at Vapi in Valsad being involved in fraudulent activity to avail ITC by using fake documents and bogus firms without actual receipts of goods. Shakir is the director of the company, while Akbar a former director.
The officials carried out raids at the firm on Monday ( was it conducted on Monday?) and recovered several incriminating documents. They unearthed documents of five non-existing firms of Surat, including Kushwaha Trading (Sagrampura area), Multi Traders (Nanpura), Amardeep Enterprise (Vesu), V K Enterprise (Katargam) and Mahakali Enterprise (Varachha), that were used for claiming the ITC.
The officials checked the business dealing by the Five Star company with the five firms and found documents of purchase invoices that were fake. Both the accused told officials that they had purchased materials through brokers, but failed to produce evidence to substantiate the same.
The DGGI officials on Monday arrested both the accused. In the complaint, the officials mentioned that both the men were involved in the fraudulent activity since January 2022 and availed ITC worth Rs 15.85 crore through fake invoices of sales and purchase of materials wroth Rs 88.29 crore. The accused were produced before Surat district court on Tuesday and sent to one-day remand. On Wednesday, they were produced before the same court and sent to judicial custody at Surat central jail.
Talking to The Indian Express, Special Public Prosecutor Advocate Imran Malek said, “Both of them were aware that were committing an offence. There is one more accused, who will be arrested soon.”
You May Like
