GST Dept Vadodara arrests Two for Passing on Bogus ITC of Rs. 12.76 Cr

Two individuals arrested for fraudulent passing of bogus Input Tax Credit (ITC) amounting to Rs. 12.76 Crores. One under Lookout.
GST Dept - Vadodara arrests - Bogus ITC - taxscan

The Central Goods and Services Tax ( CGST ) Department in Vadodara has successfully concluded an investigation which investigation revealed that M/s R B Enterprise was engaged in fraudulent practices related to the availing and passing on of bogus Input Tax Credit ( ITC ) without the actual movement of goods, a violation of the provisions outlined in the CGST Act, 2017. This malpractice led to a substantial GST evasion estimated at Rs. 12.76 crores.

Upon a preliminary examination of evidence and statements provided by Shri Aman Dixit and his accomplice Shri Maulik Parekh, it was discovered that between March 2023 and January 2024, the accused individuals illicitly availed and passed on ITC based on counterfeit invoices, with a taxable value of Rs. 70.54 crores, all without the genuine movement of goods. This elaborate scheme resulted in the evasion of GST to the tune of Rs. 12.76 crores.

Consequently, Shri Aman Dixit and Shri Maulik Parekh have been accused of deliberately violating the laws of the land, with the clear intent to evade Goods and Services Tax. The charges brought against them fall under Section 132(1)(b) & 132 (1)(l) of the Central Goods and Services Tax Act, 2017.

Additionally, another individual, Shri Udaybhai Mansara, implicated in abetting the offense, is currently absconding, and efforts are underway to locate him, as per a Press Note from the Office of the Commissioner, CGST Vadodara.

In a swift action, both Shri Aman Dixit and Shri Maulik Parekh were apprehended on 02.03.2024 under Section 69 of the Central Goods and Services Tax Act, 2017. This operation marks a crucial step in the ongoing efforts to combat tax evasion, ensuring the integrity of the GST system, and upholding the rule of law in the domain of taxation.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates