Mumbai: ‘Manager’ of four firms arrested for Input Tax credit fraud of Rs 9.95 crore

The accused was produced before a court on Thursday and sent in judicial custody for 14 days.

The Central Goods and Services Tax (CGST) Bhiwandi commissionerate has arrested a 33-year-old man from Andheri for allegedly carrying out illegal activities as manager of four firms to claim Input Tax Credit (ITC) of Rs 9.95 crore based on fake receipts received from fictitious firms.

The accused, Deep Desai, is a native of Gujarat and lives in Andheri. He was produced before a court on Thursday and sent in judicial custody for 14 days. He is lodged in Arthur Road Jail. Desai was arrested based on the questioning of one Nisha Munjal, 49, who was arrested earlier in the case.

Munjal had claimed to be running four firms named Dixa Fabrics, Ekta Fashions, Ridgewood industries and Pretty Women Fashion. She was a proprietor in two of the firms and director in the other two. Investigations showed that all the four firms are not operational in their registered premises at Bhiwandi.

The four firms availed the ineligible ITC against fake invoices (where no supplies from any suppliers have been physically received) and passed on the same to other buyers who could have used it to claim a bigger ITC.

“Both accused are blaming each other. We are finding out to which all companies they passed on the fake invoices,” said Sumit Kumar, commissioner, CGST & Central Excise, Bhiwandi.

Desai has one firm named M/s Universal Export in his name but its registration is cancelled. He deals mainly in garments and textile and told officials he is a B Com graduate.

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