CGST Mumbai West Zone busts tax fraud on bogus bills of around Rs. 60 Crore

CGST Commissionerate, Mumbai West Zone have busted a fake GST Input Tax Credit (ITC) racket and arrested the proprietor of a Versova based company.

Acting on a tip off received from Central Intelligence Unit of CGST Mumbai Zone, an investigation was initiated against M/s NECIL Metal Dealers Pvt Ltd, which deals in trading of ferrous metal and scrap.

The company was involved in fraudulent availment and passing of GST Input Tax Credit (ITC) of Rs 10.01 Crore without receiving or supply of goods, in gross violation of the provisions of CGST Act, 2017. Bogus bills of around Rs. 60 Crore were issued for this tax fraud. One of the director of this company was arrested in January 2022 but another director was absconding. He was traced on 11.05.22 and his statement was recorded wherein he admitted his role in tax fraud.

He was arrested under Section 69 of CGST Act, 2017 for contravention of Section 132 of CGST Act, 2017 and produced before the Hon’ble Additional Chief Metropolitan Magistrate, Esplanade on 11.05.2022. The Magistrate has remanded him to 14 days judicial custody. Further investigation is under progress.

This case is a part of special drive initiated by CGST Mumbai Zone to stamp out fake ITC networks and tax evaders. As a part of this drive Mumbai West Commissionerate has unearthed fake ITC amounting to Rs.465 Crore, recovered Rs. 35 Crore and arrested five tax evaders, during last six months.

The CGST officers are using data analysis and network analysis tools to identify potential fraudsters. Department is going to intensify the drive against tax evaders in this financial year.

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