On the basis of an alert, an investigation against M/s Niyati Steels has been undertaken by CGST Delhi West Commissionerate. One Shri Karan Kumar Aggarwal in his voluntary statements has admitted that he looks after all day-to-day transactions and operations of the said firm. The said firm has availed ITC of Rs 7.7 crore from non-existent entities.
Through further inquiry and the use of analytical tools, it was found that six more firms were linked with Shri Karan Kumar Agarwal. These firms on the strength of goods-less invoices worth approx. Rs. 292 crore, have collectively availed ineligible/inadmissible Input Tax Credit (ITC) of more than Rs. 52 crore from non-existent entities. Shri Karan Kumar Agarwal has admitted in his voluntary statement that he has used his Aadhar for authentication in all these 6 firms and has issued goods-less invoices without receiving any goods in some of these firms and he is also involved in sale of goods-less invoices for commission of 3 to 4% of the taxable value of the invoices.
In view of his own admission of his involvement in availment of ineligible/inadmissible ITC and substantiated by data analytics, Karan Kumar Agarwal was arrested for offences under section 132 of the CGST Act, 2017 read with section 69 of the said Act and remanded to Judicial Custody by the Ld. ACMM Court for 14 days.
Further investigation is under progress.