In a significant development, a fraudulent invoice scam worth Rs. 30 Crore has been unearthed in Mumbai. The perpetrators behind this illegal operation are six firms that have been manipulating Input Tax Credit (ITC) through fake invoices. This elaborate scheme has resulted in the circulation of approximately Rs. 30 crore worth of bogus invoices, without any actual exchange of goods or services.
The six companies involved in this deceitful enterprise are M/s Bluesky Trading Company, M/s Scorpion Enterprises, M/s C A Traders, M/s Amrut Traders Impex, M/s Sona Trading Company, and M/s Shree Satyam Trading Company. Taking swift action, the Central Goods and Services Tax (CGST) officials in Navi Mumbai have apprehended the proprietors and key figures associated with these firms.
During an intensive inquiry conducted by a team of Anti-Evasion officers from the CGST & Central Excise in Navi Mumbai, it was revealed that these companies were exploiting fake invoices to avail and utilize ITC worth Rs. 5.01 crores. Such fraudulent activities not only disrupt a level playing field for compliant taxpayers but also lead to financial losses for the government exchequer.
The accused individuals from these firms have been arrested under the provisions of Section 69 (1) of the Central Goods and Services Act, 2017. They face charges under Section 132 (1)(b) & (c) of the same act. Upon their arrest, the accused were produced before the Judicial Magistrate First class in Vashi at Belapur on August 25 and subsequently remanded to judicial custody for 14 days.
Prabhat Kumar, Commissioner of CGST and Central Excise, Navi Mumbai Commissionerate, highlighted that this operation is part of a larger Anti-Evasion drive launched by CGST, Mumbai Zone. This drive aims to combat fraudulent practices that not only disrupt a level playing field for compliant taxpayers but also lead to financial losses for the government exchequer.
It is crucial to crack down on such illicit activities to ensure fair tax practices and safeguard the integrity of the taxation system. The investigation and subsequent arrests demonstrate the government’s commitment to eradicating such fraudulent practices that undermine the economy and curtail the proper functioning of tax regulations.
This discovery serves as a reminder that vigilant monitoring and enforcement remain essential to detect and prevent tax fraud. Through these concerted efforts, authorities aim to create a business environment that fosters compliance and fairness while deterring criminal activities.
