In a major operation against tax evaders, the GST wing of the Taxation Department, Punjab, on Monday arrested four persons for a fraud of Rs 48 crore from Jalandhar.
The accused were allegedly running fake firms related to iron scrap and had obtained GST registrations only to claim input tax credit (ITC) fraudulently by issuing only invoices without the supply of actual goods.
A spokesperson for the Taxation Department said accused Pankaj Kumar, was allegedly running firms PK Trading Co, Gagan Trading Co, Krrish Trading Co, Balaji Trading Co, Krrish Enterprises and Pankaj Scrap Company. Another accused, Ravinder Singh, was allegedly running Guru HarRai Trading Co. The third accused, Gurvinder Singh, was allegedly running Shiv Shakti Enterprises, and the fourth accused, Amirtpal Singh, was running North Vogue. They all were arrested and produced before the magistrate and sent to the judicial custody. He said all four accused are the residents of Jalandhar.
The spokesperson further said an initial investigation was conducted on PV Interior Decor, Jalandhar, which further led to the investigation of Dasmesh Trading Co, Gur Har Rai Trading Co, Krrish Trading Co, Shiv Shakti Enterprise, Balaji Trading Co, Pankaj Scrap Co, Gagan Trading Co and North Vogue Co. “All these firms were involved in a nexus of fake non-functioning firms, which availed, utilised and passed the fraudulent ITC to actual beneficiaries,” he added.
The spokesperson added that these persons were only showing circular trading of iron and plastic scrap and in lieu of that they were issuing fake invoices and generating fake e-way bills on scooters, motorcycles, cars, vans, tractors and on fake vehicles having no records.
He said these persons were passing on the bogus ITC to the other than end taxpayers who adjusted their tax liabilities rather than paying the same, thus defrauding the state exchequer.
The operation to catch the culprits was held under the directions of Vikas Partap, Fianace Commissioner (Taxation), and Kamal Kishor Yadav, Commissioner, Taxation, and was supervised by Ravneet Khurana, Additional Commissioner State Tax (Audit), and Viraj S Tidke, Additional Commissioner State Tax-1 (Investigation).