CGST & Central Excise Arrests Individual for Issuing Fake GST Invoices Worth Rs. 11.61 Cr
The CGST Palghar Commissionerate, Mumbai Zone, has taken decisive action against a fake invoice racket, resulting in the arrest of an individual and the exposure of fraudulent activities amounting to Rs. 11.61 crore. Here are the key points:
- Investigation Initiation:
- The Investigation Wing of CGST Palghar Commissionerate launched an inquiry into fraudulent activities based on developed intelligence.
- Arrest of Nilesh B. Shah:
- Shri Nilesh B. Shah, Director of Hacnup Trading (OPC) Private Limited, was arrested on 08.02.2024 for his involvement in the creation and operation of fake firms.
- Involvement in Fake Firms:
- During the investigation, it was revealed that Hacnup Trading (OPC) Private Limited, a non-existent entity, was involved in fraudulent activities.
- Nilesh B. Shah admitted to creating Hacnup Trading and multiple other fake firms, orchestrated by Shri Kiran Kantharia.
- Fraudulent Activities:
- Hacnup Trading (OPC) Private Limited passed on ineligible Input Tax Credit (ITC) worth Rs. 3.90 crore and availed ITC amounting to Rs. 7.71 crore based on fake invoices without actual supply of goods or services.
- Arrest Under CGST Act:
- Nilesh B. Shah was arrested under the provisions of section 69 of the CGST Act, 2017, for contravention of section 132 of the same Act.
The actions taken by the CGST & Central Excise, Palghar Commissionerate, highlight the government’s commitment to combating fraudulent practices and safeguarding the integrity of the tax system. Such measures serve to protect the exchequer and ensure fair compliance within the business community.
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