The officers of Anti Evasion wing of Central Tax, Delhi West Commissionerate have busted a major racket of fake invoicing of Rs.7896 crores involving fraudulent Input Tax Credit (ITC) of Rs.1709 crores, using a network of 23 shell companies, which procured and generated invoices without actual supply of goods and availed as well as passed on ITC. Two persons have been arrested on 29.02.2020, in this matter.
The accused persons were evading tax by creating several dummy firms for the purpose of passing on ITC by the generation of fake invoices. They also used banking transactions to make ITC appear genuine.
Through Fake Invoicing, these firms issued the invoices to buyers, who availed fraudulent input tax credit without actually receiving any goods and defrauded the exchequer by way of availing ineligible ITC towards GST liability.
The accused have committed offences under Section 132(1)(b) and Section 132(1)(c) of CGST Act, 2017 which are cognizable and non-bailable offences as per the provisions of Section 132 (5) and punishable under clause (i) of Subsection (1) of Section 132 of the CGST Act, 2017. Accordingly, the accused were arrested on 29.02.2020 under Section 69(1) of the CGST Act, 2017 and remanded to 14 (fourteen) days judicial custody by the Chief Metropolitan Magistrate, Patiala House Court.
Further investigation in the matter is under progress.