On the basis of an intelligence developed by the officers of DGGI that M/s Anmol TradexPvt. Ltd. is engaged in fraudulent availment of Input Tax Credit (ITC) on the invoices of such firms which apparently do not have any purchases themselves.
The director of the company is Sudhir Gulati and Ramesh Kumar Maini.
It was also gathered that they were also utilizing this fraudulently availed ITC for payment of IGST on export of goods also termed as zero-rated supply under IGST Act, 2017 under GST, exports, and supplies to SEZ are zero-rated as per Section 16 of the IGST Act, 2017.
On the basis of data analysis, it was observed that M/s Anmol TradexPvt. Ltd. has availed ITC of around Rs. 29 Crore, out of which Rs. 25.01 Crore from the companies owned or controlled by Rakesh Kumar Goyal, which were engaged in circular trading, and which were passed fraudulent ITC to various other companies also including companies owned or controlled by one Vikas Chowdhary also, in which Vikas Chowdhary and one of his accomplice were arrested.
The application in the light of Section 155 of the CGST Act, 2017 said that the investigation conducted revealed that the burden to prove eligibility for input tax credit has not been discharged by the company of Sudhir Gulati.
The application also alleged that M/s Anmol TradexPvt. Ltd. has availed ITC of approximately Rs.29.23 Crore from July 2017 onwards, out of which Rs.25 Crore approximately have been taken on the basis of bills of companies owned or controlled by Rakesh Kumar Goyal. IGST refund of export taken by M/s. Anmol TradexPvt.Ltd.was Rs.26 Crore approx. Thus, the entire amount of fraudulently availed ITC on the bills provided by Rakesh Kumar Goyal has been taken by M/s Anmol TradexPvt. Ltd. as a refund on IGST.
Therefore, the Intelligence Officer said that the offenses committed by Sudhir Gulati are covered under clause (b) and clause (c) of sub-section (1) of Section 132 as detailed above, which are cognizable and non-bailable as per Section 132 (5) of the CGST Act, 2017.
On the grounds that the investigation is hampered because of the hostile attitude of Sudhir Gulati and he may cause obstruction to investigations, which have to be conducted from various persons including Rakesh Kumar Goyal. Rakesh Kumar Goyal is not joining the investigation despite repeated summons who is a key accomplice of Sudhir Gulati and investigation from him is required to be undertaken. Sudhir Gulati may also destroy the vital evidence of the case and may flee out of the country, prayed before the Metropolitan Magistrate to remand the above named to judicial custody for two weeks for the time being.