GST probe at Maa Kamakhya Coke Industries enters fourth day, two proprietors face possible arrest

The GST Intelligence and Enforcement Unit in Assam continued its search operation at Maa Kamakhya Coke Industries for the fourth consecutive day on Sunday, November 8, as investigators intensified their probe into the alleged wrongful availment of input tax credit (ITC) worth several crores of rupees. Officials have indicated that two of the firm's three proprietors could face arrest if they continue to remain absent from the investigation despite repeated summons.

The firm, M/s Maa Kamakhya Coke Industries, is involved in coal trading and coke manufacturing, with its office located at Beltola Tiniali in Guwahati and a manufacturing unit at Amingaon. It is suspected of claiming fraudulent ITC on the basis of transactions with allegedly non-existent entities, resulting in the evasion of Goods and Services Tax (GST).

ITC is a mechanism under the GST framework that allows businesses to offset the tax paid on inputs against their output tax liability. Investigators suspect that the firm availed of the facility using invoices linked to fake taxpayers to reduce its actual tax obligations.

The search operation began on Thursday, November 5, following a preliminary investigation that allegedly established the firm's involvement in claiming fake ITC. On the first day, the investigation team seized several documents and electronic devices for examination and verification. The scrutiny continued on Friday and has remained underway since then.

The firm's three proprietors — Anil Kumar Agarwal, Bimal Kumar Agarwal and Naveen Kumar Gupta — were summoned to appear before the investigating team. According to officials, Gupta, also known as Naveen Singhal, is the only proprietor who has cooperated with the investigation so far.

Anil Kumar Agarwal and Bimal Kumar Agarwal have allegedly failed to cooperate despite repeated notices. Investigators have indicated that further non-compliance could lead to their arrest.

During the search, officials also identified more than 10 GST registration numbers, prompting investigators to widen the scope of their scrutiny and examine the transactions associated with the registrations.

As the investigation progresses, the GST Intelligence team is also considering seeking assistance from the Enforcement Directorate (ED) and the Directorate General of GST Intelligence (DGGI) to examine the wider financial and tax-related aspects of the alleged irregularities.

Separately, another GST operation is underway at Mahalakshmi Continental, a business owned by Naveen Singhal. The nature of the alleged irregularities at the establishment is yet to be established.