Business Bureau :
It was also found that the taxpayer had not filed GSTR-3B returns for the period January 2020 to October 2020 till date and thus has not paid the aforesaid GST liability of Rs 2.94 crore till date though the said GST credit had been passed on fraudulently to various taxpayers by filing of GSTR-1 for the period January 2020 and February 2020.
THE Anti Evasion Branch of CGST and Central Excise, Nagpur-II Commissionerate on November 18 arrested Shabbir Fakhruddin Ali, proprietor of M/s Moiz Constructions (GSTIN 27ADBPA1595Q1Z9) on charges of fraudulently issuing invoices amounting to Rs 16,71,22,199 involving GST of Rs 2.94 crore. During the investigation of Moiz Constructions, the Anti Evasion Branch of CGST and Central Excise, Nagpur-II Commissionerate had found that the proprietor of the firm Shabbir Fakruddin Ali had indulged in issuing fake invoices resulting in passing on total Input Tax Credit (ITC) of GST amounting to Rs 2,94,22,194 to various taxpayers by filing GSTR-1 return for the period January 2020 and February 2020 without actual supply of goods like building material, MS scrap, CI scrap and copper scrap as mentioned in the said returns, so as to enable the recipients to utilise Input Tax Credit based on such fake invoices.
It was also found that the taxpayer had not filed GSTR-3B returns for the period January 2020 to October 2020 till date and thus has not paid the aforesaid GST liability of Rs 2.94 crore till date though the said GST credit had been passed on fraudulently to various taxpayers by filing of GSTR-1 for the period January 2020 and February 2020. In his confessional statement dated November 12, 2020 recorded under Section 70 of the CGST Act, 2017. Ali had accepted that he obtained GST Registration in the month of July 2017 for doing trading activity in respect of building material and filed nil GST returns of the period July 2017 to December 2019 but suddenly during the month of January and February 2020 he issued fake invoices amounting to Rs 16.71 crore involving GST of Rs 2.94 crore.
However, he did not have any facility to store such trading goods at his declared principal place of business premises nor he has ever carried out any physical sale/ purchase activity from the said premises i.e. Plot No. 67, Zehra Manzil, Awasthi Nagar, Nagpur 440013. He has accepted in his statement that he has neither purchased nor sold any goods since obtaining the registration i.e. from July 10, 2017 to till date. He has also accepted that he does not have any documents and records related to GST transactions like purchase invoice, sale invoice, stock register, sale purchase ledger etc., in respect of M/s Moiz Constructions. Further investigation is being carried out at recipient end to unearth the racket of availment of ITC fraudulently on the basis of fake invoices.
Shabbir Fakhruddin Ali proprietor of Moiz Constructions was accordingly arrested under authorisation issued by the Commissioner, CGST, Nagpur-II under Section 69(1) of CGST Act, 2017 read with Section 132(1)(ii) of CGST Act 2017. He was produced before the Deputy Commissioner (Preventive) CGST and C.Ex., Nagpur who granted him bail after obtaining necessary surety. The operation was carried out under the guidance of Radhey Shyam Maheshwari, Commissioner, CGST and C.Ex., Nagpur-II and the operation was supervised by Neelesh Rautkar, Jt Commissioner, CGST and C.Ex., Nagpur-II . The investigation team was headed by Rahul Joldapke, Deputy Commissioner (Preventive).