GST : Three persons arrested for cheating by fraudulent Input Tax Credit of Rs 5.70 Crores

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New Delhi, July 24, 2019 : CGST Commissionerate, Gurugram, Haryana has arrested three persons namely, Sh. Sh. Anil Kumar, S/o Sh. Balwan Singh, R/o VPO Jevra, Tehsil Barwala, Dist.- Hisar, Haryana, Sh.Bhikaram, S/o Sh. Babu Ram, R/o 415, Gali No. 28 C-1 Block, KhajuriKhas, Delhi-110094 and Sh. Kuldeep Sharma, S/o Sh. Ramesh Sharma, R/o Gali No. 4, Kakroi Road, Sonipat Haryana. During investigating, it was found that they have created bogus firm in the name of M/s Palak International, Shop. No. 11, Maliyan Market, Sohna, Gurugram, Haryana on the fake documents of a person namely Sh. Jitender for the purpose of issuing numerous fake invoices without any concomitant movement of goods for such transactions thereby proving wrongful availment and utilization of fake Input Tax Credit.

The firm, M/s Palak International, created by the said three persons issued invoices worth Rs. 31 Crores(approx.) with a GST components of Rs. 5.70 Crores and during the investigation, they have agreed to the same. The said firm has passed on fraudulent Input Tax Credit of Rs. 5.70 Crores to the various buyers who have availed the same to discharge their GST liabilities against their outward supply with an ulterior motive to defraud the Government Exchequer. Thus, Sh. Anil Kumar, Sh. Bhikaram and Sh. Kuldeep Sharma have committed an offence under Section 132 (1)(b) & (c) of CGST Act, 2017 which is punishable under Section 132(1) (i) &(ii) of the act ibid and therefore the offence is Cognizable and non-bailable under Section 132(5) of CGST Act, 2017 and liable to arrest under Section 69 of the Act.

Consequently, Sh. Anil Kumar, Sh. Bhikaram and Sh. Kuldeep Sharma were arrested on 23.07.2019 under Section 69(1) of CGST Act, 2017, following which all the accused persons were produced before the Hon’ble Judicial Magistrate, 1st Class, Gurgugram, Haryana at his residence who remanded Sh. Anil Kumar, Sh. Bhikaram and Sh. Kuldeep Sharma to judicial custody of 14 days on 23.07.2019. During the investigation conducted so far, the GST & Central Tax, Gurugram, Haryana has recovered an amount of Rs. 3 Crores (approximately) towards the GST evaded.

Further investigations in the matter are in progress.