Fake Invoice racket busted by Medchal Central GST sleuths

Hyderabad, May 22 : Based on specific information received from Kolkata and further intelligence gathered, the officers of Medchal Central GST Commissionerate have registered cases against five firms/entities —Hindustan AAC Products; Aitri Engineers & Contractors Ltd; Sri Krishna Castings; Shree Metals and Aavya Entreprises, who have been indulging in procuring and supplying fake GST invoices without actual supply of goods mentioned in the invoices (MS Scrap, Copper Scrap, Aluminum scrap etc) and have been passing on fraudulent input Tax Credit (ITC) since July, 2017. Some of them were also utilizing such fraudulent ITC to offset their GST liability on their manufactured goods, thereby evading the tax payable to the Government. The value of goods involved is Rs 131 Cr (Approx) and Input Tax Credit (ITC) availed is Rs. 22.64 Cr (Approx).

During the searches at different premises on May 15 and 17, unaccounted cash of Rs 20 lakh, USD 4150 and several incriminating documents were seized. The details of seized cash along with foreign currency, have been shared with Income Tax Department, for further action at their end. During initial investigation, it was revealed that the details of vehicles indicated to carry huge volume of goods as mentioned in E-way bills were fictitious. Some of the vehicles on enquiry were found to be passenger vehicles / scooters/ tractors, which were declared as carrying goods.

So far, three key persons of the said firms involved in the office falling under sub-sec (b), (c) and (f) of Sec. 132 (1), have been arrested, u/s 69 of CGSTA of CGST Act, 2017 and are punishable under the clause (i) of sub-sec(1) of Sec.132 ; and they were later remanded to judicial custody for 14 days. (NSS)

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