The Directorate General of GST
Intelligence (DGGI) GurugramZonal Unit (GZU), Haryana has detected a case
wherein total ITC of more than Rs 160 crore has been utilized and passed on by
network of nonexistent& fake firms in tandem with various existing entities
/ merchants / wholesalers.
Based on intelligence which was
analyzed& acted upon by the GurugramZonal Unit, it emerged that a merchant,
who is an importer and wholesale trader of dry fruits has availed IGST Input
Tax Credit on imports, but has further issued duty paid invoices to various
non-existent firms, whereas the goods (dry fruits) were sold in the open market
to various retailers.
The merchant has
deposited Rs. 5 crore till date, additional recovery in this matter is expected.
Quiet a few of the firms, to whom
invoices were issued were found to be non-existent / fake (registered on GST
portal under different HSN), who further issued goodless invoices to
fraudulently pass on ITC without supply of any goods. The merchant has rendered itself to liable
under Section 122 (i) (ii) of the CGST Act, 2017, etc., as a Consequence of
which the merchant has deposited Rs. 5 crore till date, additional recovery in
this matter is expected.
In all, 10 such
fake firms busted so far in the investigation, have fraudulently availed & passed
on Input Tax Credit (ITC) in excess of Rs. 160 crore, bases on inwards from the
merchant, and from other fake/cancelled sources, which is under further
investigation. Controller of one such firm to whom duty paid invoices were issued
without supply of actual goods by the merchant, prima facie passed on
fraudulent ITC of Rs. 26.3 crore, was identified as Sh. PawanKumar Sharma. It
emerged through investigation that Sh. Pawan Kumar Sharma is also proprietor of
another firm M/s Pawan Traders also involved in passing on fraudulent Input Tax
Accordingly, ShriPawan Kumar Sharma was
arrested on 13.05.2022 under the provisions of Section 69 of CGST Act, 2017
read with clause (b) (c) of subsection (1) of section 132 of CGST Act, 2017 and
produced before CMM, Patiala House Court on 13.05.2022, who ordered judicial
custody for 14 days.
Further investigations in the matter are