Based upon specific intelligence, the officers of the Anti Evasion branch of Central Goods and Service Tax (CGST) Commissionerate, Delhi (West) have unearthed a case of availment/utilization and passing on of inadmissible input tax credit (ITC) through goods less invoices of ₹ 9 crore (approx). The operation involved floating of multiple firms with the intent to avail/utilize & passing on of inadmissible credit.

The primary beneficiary firms in this network are M/s Ishita Ispat and M/s H. M. Trading Company of which Sh. Naveen Bansal is the Proprietor and also the de facto operator for the other two firms as admitted by him on record. These entities are dealing in metal scrap and involved in availing inadmissible ITC using good less invoices. Sh. Naveen Bansal tendered a voluntary statement admitting his guilt.

Therefore, Sh. Naveen Bansal knowingly committed offences under Section 132(1)(b) and 132(1)(c) of the CGST Act, 2017 which are cognizable and non-bailable offences as per the provisions of Section 132(5) and are punishable under clause (i) of the sub section (1) of Section 132 of the Act ibid. Accordingly, he was arrested under Section 132 of the CGST Act on 26.03.2021 and remanded to judicial custody by the duty Metropolitan Magistrate for 14 days. Further Investigations are in progress.

Delhi Zone has been making sustained efforts to check evasion of GST, leading to detection of ₹ 5,319.6 crore in the present FY and 41 persons have been arrested in these matters.