New Delhi, Jan 29 (UNI) Delhi North Commissionerate, Delhi CGST zone, has recently detected two cases of issue of fake invoices for fraudulent availment of input tax credit (ITC) leading to arrest of four people, including an authorised signatory.

Another case of clandestine removal of goods without issuing invoices was also detected wherein the proprietor was arrested.

The arrested people have been remanded to judicial custody for 14 days by the Chief Metropolitan Magistrate(CMM), New Delhi at Patiala House Court, the Office of the Pr. Commissioner of GST and Central Excise said in a statement here on Wednesday.

The four accused in the fake ITC case had availed total ineligible ITC of around Rs 90 crore on invoices issued by non-existent firms. The modus operandi involved purchase of non-IGST paid goods from various unknown firms/agents which were covered under the invoices issued by several fake firms.

To camouflage illegal purchase of invoices, fake transportation documents were generated and supplies were shown to have been received from various fake firms. These firms were floated on the strength of Ids of dummy persons. Two of the arrested were the mastermind behind this racket.

In the clandestine removal case, the accused had, prima facie, supplied goods of about Rs 41 crores without issuing invoices and thus defrauding the exchequer to the tune of more than Rs 7 crore.The accused, inter alia, procured goods without invoices and supplied the same to different firms across Delhi NCR, Haryana and Uttar Pradesh without issuing invoices.

The details were maintained in an encrypted form and were recovered from the devices and records available at the premises.

The five accused in the above cases had committed offences under the provisions of

Section 132(1)(a),(b) and (c) of the CGST Act 2017, which are cognizable and non-bailable

under Section 132(5) being punishable under Section 132(1)(i) of the said Act, and were consequently arrested. Further investigations in all of the above cases are underway to identify other beneficiaries and to recover the GST involved.

UNI SW ADG 1718