The Officials of Central GST & Central Excise, Raipur arrested an owner of a Cement Manufacturing Plant and also a trader of Iron and Steel Products namely Mr. Shubham Singhal on Saturday 12.09.2020. On preliminary Investigation M/s Adhiraj Cements had wrongly availed Input Tax Credit of Rs 12.53 Crores on the basis of bogus invoices issued by many firms.
Further scrutiny of the documents is under process and it is believed that the amount of Tax Evasion may go up to 30 Crores. During the search of the premises unaccounted cash of Rs 17.50 Lakhs has also been found which has been seized by CGST officials, the cash and the documents seized prima facie Indicates that the Hawala Transactions had recklessly been carried out by the Mr. Shubham Singhal. During the investigation it was found that M/s Adhiraj Cements had availed Input Tax Credit on bogus invoices valued Rs 82.10 Crores of M/s United Ispat, Raipur wherein it has shown to forward wrong Input Tax Credit of Rs 12.53 Crores.
M/s United Ispat, Raipur is a non-existent firm which had been solely created for passing on of wrong Input Tax Credit by Issuance of bogus bills, The offences by Shri Shubham Singhal are punishable under Section 132 of the CGST Act 2017and thus he was arrested by the officials of CGST and Central Excise Raipur under provisions of Section 69(1) of the CGST Act 2017 The entire operation was carried out under the directions of Shri B.B. Mohapatra, Principal Commissioner, CGST, Raipur.
The investigations carried out by various teams of CGST officials was supervised by Shri Shrawan Bansal, Joint Commissioner, CGST, Raipur and Shri Rishu Verma, Assistant Commissioner (Prev). Preliminary enquiry indicates that there is racket of dealers dealing with fake Input Tax Credit bills spreading across many states and many other manufacturers availing such fake Input Tax Credit for avoiding payment of GST. Further Investigation in this regard is under progress.