Fake Input Tax Credit racket worth Rs. 12 crores busted by Thane CGST; One Arrested.
The officers of CGST Thane Commissionerate acting on specific intelligence developed by CIU, Mumbai CGST Zone, booked an anti-evasion case and arrested the Proprietor of M/s. Star Scrap Steel. The firm is involved in the trading of Ferrous Waste And Scrap; remelting scraps ingots of Iron or Steel.
The investigation has revealed that the firm was indulged in fraudulent availment and utilization of Input Tax Credit (ITC) to the tune of Rs 12 crores without receiving the goods or services in violation of the provisions of CGST Act 2017.
The firm was getting Input Tax Credit from many trading companies and was further passing it on to Rolling Mills. This was done by getting inadmissible Input Tax Credit on the basis of invoices issued by fraudulent entities without receipt and supply of goods.
Searches were carried out at various premises of taxpayers located across Thane, Mumbai, Navi-Mumbai and Raigad, which were involved in issuing fake credit to M/s. Star Scrap Steel without actual supply of goods.
The Proprietor of M/s. Star Scrap Steel was arrested under the provision of CGST Act 2017 and produced before the Hon’ble Judicial First-Class Magistrate Court, Thane on 3rd December 2021 and was remanded to 14 days judicial custody. Further investigation in the matter to identify others involved in tax fraud is in progress.
