A 59-year-old chartered accountant
(CA) was arrested by the CGST and Central Excise department for
allegedly duping the government of Rs 47.57 crore by claiming credit on
supply of goods and services that never occurred. The CA allegedly
issued invoices showing supply of goods or services without actual
supply of goods or services and enabling two companies to avail credit
Input Tax Credit (ITC) of Rs 47.57 crore.
The Central Goods and Service Tax Thane Commissionerate arrested Sunil Dwarkadas Shah, CA and CEO of Anikho Trading and Prana Trading Pvt Ltd. During interrogation, Shah admitted that he used to receive commission of 0.2 to 0.25% for enabling the other companies to use the platform of the two companies floated by him for purchase and sale of invoices. Official of CGST said that the Shah issued invoices of Rs 47.57 crore, therby enabling the purported buyers to avail inadmissible credit of
Rs 8.47 crore from Anikho and Prana trading companies. Shah, a resident of Malad is in police custody till February 11.
On the basis of this, the officials carried searches of Anikho Trading and Prana trading where they found several purchase invoices of various companies. To mislead the government, the accused made two women as directors by submitting their Aadhaar cards and other details without their knowledge.
During inquiries, it transpired that Shah had floated the two companies in 2007 which were later registered under GST. “Modus operandi was that those companies which wanted to enhance their turnovers and avail loans approached Shah. Shah would ask these companies to issue invoices to Shah’s two companies—Anikho and Prana showing supply of goods though no goods were supplied. Shah would then avail ITC. Prana trading issued an identical invoice to the first company which had initiated the transaction with only a minor increase in value of goods,” 'said an official.
The probe that Shah operated from a 150sqft office in Kandivli with no godowns or storage to receive, store and supply of goods in bulk quantities as mentioned in the purchase invoices. Further, there were no e-bills generated or transport bills, no vehicle numbers were mentioned on the invoices.
Advocate Ravi Hirani said, “My client has not evaded any GST, the goods have been purchased from seller and in turn seller, he has also paid the GST and my client has not prepared any documents to avail ITC, he has been wrongly charged.”
The Central Goods and Service Tax Thane Commissionerate arrested Sunil Dwarkadas Shah, CA and CEO of Anikho Trading and Prana Trading Pvt Ltd. During interrogation, Shah admitted that he used to receive commission of 0.2 to 0.25% for enabling the other companies to use the platform of the two companies floated by him for purchase and sale of invoices. Official of CGST said that the Shah issued invoices of Rs 47.57 crore, therby enabling the purported buyers to avail inadmissible credit of
Rs 8.47 crore from Anikho and Prana trading companies. Shah, a resident of Malad is in police custody till February 11.
On the basis of this, the officials carried searches of Anikho Trading and Prana trading where they found several purchase invoices of various companies. To mislead the government, the accused made two women as directors by submitting their Aadhaar cards and other details without their knowledge.
During inquiries, it transpired that Shah had floated the two companies in 2007 which were later registered under GST. “Modus operandi was that those companies which wanted to enhance their turnovers and avail loans approached Shah. Shah would ask these companies to issue invoices to Shah’s two companies—Anikho and Prana showing supply of goods though no goods were supplied. Shah would then avail ITC. Prana trading issued an identical invoice to the first company which had initiated the transaction with only a minor increase in value of goods,” 'said an official.
The probe that Shah operated from a 150sqft office in Kandivli with no godowns or storage to receive, store and supply of goods in bulk quantities as mentioned in the purchase invoices. Further, there were no e-bills generated or transport bills, no vehicle numbers were mentioned on the invoices.
Advocate Ravi Hirani said, “My client has not evaded any GST, the goods have been purchased from seller and in turn seller, he has also paid the GST and my client has not prepared any documents to avail ITC, he has been wrongly charged.”
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