The GST Department prayed before the Delhi Court to remand persons alleged of wrongfully claiming ITC in Judicial Custody for 14 days.
The search operation at the residential premises of Inder Pal Singh was carried out, in accordance with the law. During the search proceedings, Inder Pal Singh informed that earlier DGGI, Delhi Zonal Unit had also conducted searches at the same premises and they had resumed all the documents.
Accordingly, a mail was sent to DGGI DZU with a request to provide the details of the investigation being carried out by them. Vide mail DGGI DZU informed DRI that they had initiated inquiries against M/s. DBPT Clothing P Ltd, M/s. Fabulous Exim Private Ltd, M/s. Sewon Clothing P Ltd M/s. Flaxen Exim P Ltd, M/s. Wadhawan Fabrics P Ltd and M/s. ISR Clothing P Ltd.; the basis of inquiries was a racket involved in the issuance of fake invoices without accompanying supply of goods or services; the firms had taken ITC on the basis of invoices issued by Tetley International, MJK Trading Pvt. Ltd, Decent Trading & Exim, and Libra Overseas and the said firms were part of a racket involved in the issuance of fake invoices without accompanying supply of goods or services.
DGGI had also forwarded a copy of the statement of Inder Pal Singh recorded under Section 70 of the CGST Act, 2017, wherein he had admitted that during the period July 1, 2018 to December, 2019 he had exported the goods purchased from the local market and he had purchased the invoices from various vendors. He had also stated that the documents pertaining to his firms were with the CGST Delhi South Commissionerate.
Inder Pal Singh admitted that to date bank remittance in respect of his firms as mentioned in the table below had not been realized and goods that had been exported from the IECs were purchased from the local market and their invoices were purchased from various vendors; the five firms were fictitious in nature and had been opened to avail export incentives fraudulently and till date, no legal remittance had been received by them.
He inter-alia accepted that he is the mastermind and main person behind this fraud wherein he had fraudulently availed total drawback amounting to Rs. 2,74,70,647 and IGST refund amounting to Rs.8,51,42,706 against the export made in IEC.
Therefore, the department urged that economic offences are offences that corrodes the fabric of democracy and are committed with total disregard to the rights and interest of the nation and are committed by breach of trust and faith and are against the national economy and national interest.
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