A team of officers of Anti-Evasion, CGST & Central Excise Raigad Commissionerate, Mumbai Zone, yesterday arrested two persons involved in generating and fraudulently passing on Input tax Credit (ITC) of more than Rs. 9 crore by creating fictitious firms and issuing invoices without actual supply of goods/service.

Acting upon intelligence, the team identified the shell firms being operated by the accused to avail and pass on fake ITC. M/s. Jaisha Metals Private Limited availed ineligible credit passed on by non-existent firms registered based on forged documents. M/s. Jaisha Metals Private Limited was found non-operational at the registered principal place of business evidencing no goods received or supplied.

The investigation revealed that the Directors of M/s. Jaisha Metals Private Limited, Shri Mukesh Devnarayan Tiwari, resident of New Panvel, and Shri Sandeep Nanhelal Modanwal, resident of Dombivli (W) were actively involved in the fraudulently availed ITC. Both were arrested under section 69(1) of CGST Act, 2017 for offences punishable under Section 132(1)(b) /132(1)(c) of CGST Act, 2017 and produced before the Judicial Magistrate First Class, Panvel. The court has sent both persons to judicial custody.

Further investigation is in progress to identify other beneficiaries and operators of this fake invoice racket.

Fraudulent Input Tax Credit leads to arrests under CGST offence provisions; investigation into shell firm invoice racket continues. Allegations concern the fraudulent availing and passing of Input Tax Credit through fictitious suppliers and forged registrations, with the recipient firm found non operational. Two directors were arrested under CGST procedural provisions for offences under the criminal clauses of the CGST regime related to false invoices and tax evasion, produced before the magistrate and remanded to judicial custody. Investigation continues to identify other beneficiaries and operators of the fake invoice racket.