GST Dep arrested two directors for input tax credit fraud of more than Rs 10 crore
The CGST Commissionerate, Faridabad, Haryana has arrested two Directors of M/s. F2C Wellness Pvt. Ltd., Faridabad on charges of illegally availing and passing on input tax credit (ITC) by issuance of invoices without supply of goods.
On the basis of the investigation conducted till date, the said firm showed purchase of cement from non-existent concern namely M/s Vishal Enterprises, Gautam Buddha Nagar using fraudulent invoices not backed by concomitant supply of goods, showing fake transport records. In this way, M/s. F2C Wellness Pvt. Ltd., Faridabad had passed fraudulent ITC of Rs. 10.33 crore on invoices without accompanying goods to various end users.
The investigation spanned multiple locations in Delhi NCR area and based on documentary evidence and statements recorded, it was ascertained that Shri Paras Arora and Shri Devpal Soni, both directors of the said firm, were key players in the network of companies availing fraudulent ITC.
Accordingly, Shri Paras Arora and Shri Devpal Soni, have been arrested on 10.08.2021 and produced before, the Ld. Chief Judicial Magistrate, Faridabad, who has sent them to judicial custody for 14 days. A total fraudulent ITC of Rs 10.33 crore has thus been passed/availed by the said firm.
Further investigation in the matter is under progress.