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.”