Acting tough against the tax defaulters, the Nagpur Zonal Unit of Directorate General of Goods and Service Tax Intelligence made two arrests in last two days. On Monday, the authorities made its first arrest in Nagpur city while on Tuesday they arrested another tax defaulter based in the Aurangabad. Both Nagpur and Aurangabad come under the jurisdiction of Nagpur Zonal unit of DG of GST Intelligence. A senior officer attached to the department, on a condition of anonymity, said that it was for the first time that the DG of GST Intelligence had arrested tax defaulters.
Based on the intelligence that certain manufacturing companies were engaged in availment of fraudulent Input Tax Credit (ITC) based on fake invoices without receipt of any actual goods in their factories, investigations were undertaken by the authorities. In one such investigation against M/s. New Age False Ceiling Private Limited, Nagpur, the taxpayer was found to have taken fraudulent ITC of approximate Rs 4.63 crore based on 133 fake invoices without actual receipts of goods. The availment of such fraudulent ITC is a punishable offence and thus Pawan Vinod Lal, Accounts Manager of New Age False Ceiling has been placed under arrest on Monday. Manoj Shashiprakash Gupta, Director of the company and allegedly the mastermind behind the entire modus operandi is absconding.
Further investigation in the case is under progress. As part of the ongoing drive being undertaken by DG of GST Intelligence, the authorities found yet another defaulter based in Aurangabad on Tuesday who was engaged in availment of fraudulent Input Tax Credit based on fake invoices without receipt of any actual goods in his factory.
Investigations were undertaken by the Nagpur Zonal Unit in Aurangabad area. In a similar investigation undertaken against M/s Precision Power Products (I) Private Limited, Aurangabad, the taxpayer was found to have taken fraudulent Input Tax Credit of approximately Rs 3.04 crore based on 30 fake invoices without actual receipts of goods. Vikas Bhamburdekar, Managing Director of the company as been placed under arrest on Tuesday. Further investigation are going on in the case.