GST sleuths unearth Rs.10-cr fake invoicing

Mumbai: In continuation of crusade against fake invoices, an investigation was carried out against Cosabay Commodity. Purnima Paradise in Raigad floated by Amita John Cannell (advocate) Director of the firm, for availing ineligible ITC to the tune of Rs 9.57 crore.

The Company is mainly involved in trading of sugar and Aluminum Strips. The declared Principal Place of Business was found to be in existence (residential flat) on physical verification, but there was no physical stock or records of the company. Investigations further revealed that in relation to ITC of Rs5.36 cr, there were no e-Way bills.

Manpreet Arora, Commisssioner, Central GST-Raigad, said: "Department is churning extensive data and using more data analytics now which has immensely helped into booking cases of fake ITC." The CGST Commissioner has also warned taxpayers to avoid issuing or availing fake invoices and e-Way bills.

Further, in relation to ITC of Rs4.21 cr, the name of the transporter mentioned in e-Way bill was Ekdanta Transport Company, who in his statement mentioned that they have not issued any e-Way bills to the company, hence, the details of transporter mentioned in e-way bill was also found to be fake.

Further, during the statement taken on Amita John Cannell, Director, admitted that no goods were stored or received and supplied at the Principal Place of Business. Hence, ITC to the tune of Rs 9.57 cr availed by the company was found to be fake. Amita John Cannell, has been arrested on June 28 under Section 69(1) of the CGST Act, 2017, and was remanded to 14 days Judicial custody by Panvel Court.