The commissioner of the Central Goods and Service Tax ( CGST )and Excise arrested Shri Vikash Ladha, Director of Lark Wires & Info Tech Ltd for creating bogus firms and issuing of invoices without actual supply of goods resulting in availment and passing on of fraudulent Input Tax Credit ( ITC ).
The Preventive section of Vadodara-II Commissionerate has unearthed a racket of fake invoicing by a chain of non-existent firms among themselves. Searches under Section 67(2) of the CGST Act. 2017 have been carried out on 31.07.2024 at the following premises of firms based on intelligence of circular trading.
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Shri Vikash Ladha, Director of M/S LARK WIRES & INFOTECH LTD and M/s LARK FERROUS METALS LTD, and Sh. Avinash Ladha were found to be the key conspirator. They were looking after management of M/s Punyava Wires Cables Private LIMITED, M/s Ativira Wires Cables Private Limited and M/s Amrekha Commodities Private Limited, are the persons who connived and abetted the offence of creating non-existent firms, whose GST registrations have been obtained only on paper, without any business activity.
Invoices and e-way bills have been generated only to inflate the turnover of these firms. However, there is no actual sale or purchase of goods and no actual movement of goods. The firms have family members or relatives of Sh. Vikash Ladha and/or Sh. Avinash Ladha as their directors, but the entire process of fake billing and transactions has been carried out by Shri. Avinash Ladha and Shri. Vikash Ladha.
It has been noticed that the network of firms and three other related firms have availed ITC of Rs. 76,75,31,197/ and passed on ITC of Rs. 76.35.66.985/- (total: Rs. 153,10,98,182/-) among themselves, without any actual movement of goods.
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It was found that the alleged fraudulent offence done by Shri Vikash Ladha and Shri Avinash Ladha are covered under Section 132 (1)(b), (c), (f) and (1) of the CGST Act, 2017 which is punishable under the provisions of Section 132 (1)(i), (iv), read with sub-section 132(5) of the CGST Act, 2017.
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