Gurugram Zone DGGI arrests 2 traders for fraudulent issuance of about Rs 40 cr. of ITC

Speed Post News Network

New Delhi : Gurugram Zonal Unit of the Directorate General of GST Intelligence (DGGI) on July 18, 2019, arrested two businessmen  : Anil Kumar Jain of M/s Jatalia Global Ventures Ltd, Delhi, and Manoj Garg of M/s Manoj Cables Ltd. Delhi, in a case of fraudulent issuance of Input Tax Credit (ITC) invoices without actual supply of goods involving GST evasion of approximately Rs 40 crore on the taxable value of concocted supplies of Rs 210 crore.

This action was a follow up of similar detection of evasion of Rs 79.21 crore on taxable value of Rs 450 crore in the case of M/s MICA Industries Ltd., Delhi, M/s Satellite Cables Pvt. Lld., Bhiwadi, and M/s Galaxy Metals Products in which three businessman were arrested on September 14, 2018, against whom prosecution under the GST Act has since been launched by the Department.

The quantum of evasion and the gravity of the offence committed by Anil Kumar Jain of M/s Jatalia Global Ventures Ltd. and  Manoj Garg of M/s Manoj Cables Ltd is cognisable and non bailable under the CGST Act, 2017, under the provisions of sub section (5) of Section 132 (1). Thus, both of them were arrested under Section 69 (1) of the CGST Act,2017, and produced before the Judicial Magistrate 1^st Class (JMIC), Gurugram, who remanded both of them to 14 days judicial custody.

In the course of investigation, searches were conducted at several places during which various incriminating documents were found which evidenced issuance of fake bills/invoices in a Circular manner among the said companies without any concomitant movement of goods for such transactions thereby proving wrongful availment and utilisation of fake input tax credit. The arrested persons have agreed to the same, according to a PIB release.

Further investigations are underway and the quantum of evasion is likely to go up. Officers are not ruling out the possibility of existence of several other firms which may be involved in this nexus.