2025 (10) TMI 58

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....st bail to him in pursuance to the summons issued against him by respondent No. 3 under Section 70 of the Central Goods & Service Tax Act, 2017 (for short 'CGST Act'). 2. As per the allegations, an investigation/inquiry was conducted by respondent No. 2 against one M/s Sona Casting Private Limited (for short 'M/s Sona') on 15.10.2024 and it was revealed that M/s Sona had availed fraudulent Input Tax Credit (for short 'ITC') to the tune of Rs. 54.40 crores from some non-operational/fictitious firms. It was revealed that M/s Manvi Steels (for short 'M/s Manvi') was one of the major suppliers of M/s Sona, who had passed on fake ITC to the tune of Rs. 3.72 crores to M/s Sona. The address of M/s Manvi was found to be fake and it was also foun....

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....ne of Rs. 3.72 crores to M/s Sona. He had created a fictitious firm, which was actually non-existent. The documents collected by the respondents have revealed that there are material contradictions between the figures of inward and outward supplies made by the firm. Wrong account numbers had been provided in the GST portal by the petitioner. No actual movement of the vehicles shown in e-way bails has been found. He is shown to have rotated money from one bank account to another without any profit or margin. The list of suppliers of the firm of the petitioner was also having fictitious names. He has not cooperated with the inquiry and has not produced documents, which were required from him. He has caused loss of GST amount to the tune of Rs....

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....non-existent. 3.4. Further, Summons dated 19.10.2024 was issued to Sh. Jatinder Kumar, Prop. of M/s Manvi Steels to appear in the office to tender his statement. Shri Jatinder Kumar appeared on 24.10.2024 and his statement was recorded on 24.10.2024 wherein he, inter-alia, stated that he is proprietor of firm, M/s Manvi Steel which is registered with the GST Department vide GSTIN: 03BEWPK1733D1Z0 since Feb 2021; that the firm exact address is not known to him. He, himself only manage the firm's sales and purchases. He doesn't have his contact number of Accountant. All his purchase is through broker only, whose name and mobile number is not known to him.; that his major buyer is M/s Sona casting Pvt Ltd. Others buyers is not....

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.... proceedings and his statement dated 24.10.2024, it is clearly visible that Sh. Jatinder Kumar is dummy person, having no knowledge of the business activities of M/s Manvi Steels. 3.7. Inward Supply Chain of M/s Manvi Steels: on analysis of their inward chain, it was observed that that they have availed total ITC amounting to Rs. 14,70,25,501/ - and out of total ITC, they have availed ITC amounting to Rs 8,47,65,308/- from the cancelled suo-moto/suspended firms. The said ITC have been availed on the basis of invoices raised by non-existent/bogus/fake firms which were cancelled by the concerned jurisdictional authorities on the basis of reasons i.e. conducting PV and found non-existent/by reason of fraud/Returns etc. 3.8. E....