CGST & Excise officers nab 2 men for evasion of tax

Mumbai: So far, CGST and Excise officers in Belapur in New Mumbai have arrested two persons in connection with evasion of tax. CGST and Excise officers in Belapur in New Mumbai (Raigad) have arrested Amit Shukla for availing ITC of Rs 66 crore. Shukla is the proprietor of Vijay lspat and director of Sushmita Mercant and hence the decision maker for his firm.

The modus operandi was simple. First, he made sure that almost the same and fake invoices were issued for sale and purchase without actual sale and movement of goods with the sole intention to defraud the government exchequer. In another case, the sleuths of the department have also arrested the Chairman and Managing Director of a software company for evading tax of Rs 9.60 crore.

The CMD of the software company, Global Space Technologies at Millennium Business Park, Mahape, was found not reporting its turnover in income tax returns. "They hid their turnover from authorities, but it was revealed on examining their private records. It involved evading tax of Rs 6.30 crore. The company also availed itself of ineligible input tax credit (ITC) on the strength of invoices raised by fake companies to which there was no supply of goods or services. The ITC availed is of Rs 3.30 crore on the invoices under which no goods or services have been received," Manpreet Arora, Commissioner, CGST and Central Excise Department, said.

The department has already recovered Rs 45 lakh crore from him and more amount was likely to be recovered shortly. In both cases, the accused were arrested under the GST Act and remanded in police custody for 14 days.