Hyderabad, May 30 (Maxim News): Officials of the anti-evasion wing of the Medchal Central GST Commissionerate booked yet another case of fake invoices and evasion of GST against a firm “Aavya Enterprises” for taking Input Tax Credit (ITC) fraudulently based on fake invoices.
Company proprietor Amit Mittal was arrested on Thursday. He was later remanded in judicial custody for 14 days. The duplicate invoices were received from nine different entities in Kolkata and Hyderabad without actual receipt of goods. The fraudulent ITC that was taken was utilized by Aavya Enterprises for evasion of GST payable by them in their supplies of aluminum and copper scrap. The supplies were procured from the open market and unregistered suppliers when the metal scraps were sold or supplied to manufacturers of aluminum, copper-rods, ingots, castings etc. The offence fell under Section 132(1)(c) and Section 132(5) of the CGST Act.
GST Principal Commissioner M. Srinivas said the offence was a cognizable and non-bailable offence attracting the provisions for arrest under Section 69 of CGSTA. The case against Aavya Enterprises, he said, was in continuation to the cases registered against four firms – Hindustan AAC Products, Aitri Engineers and Contractors Limited, Sri Krishna Castings and Shree Metals.
The total amount of fraudulent ITC taken based on fake invoices and in turn utilized to evade GST by Aavya Enterprises was Rs.5.76 crore. The total value of goods involved in this bunch of cases was approximately Rs.143 crore and the fraudulent ITC involved was Rs.25.74 crore. The Economic Offences Court has dismissed bail for two persons, who were arrested earlier in connection with a similar offence. “Investigation is in progress to trace further leads to identify other firms involved in the fake invoice racket,” Srinivas added. (Maxim News)
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