Delhi: Two held for allegedly being involved in tax evasion of Rs 17 crore

The Central Goods and Service Tax (CGST) Delhi South Commissionerate on March 18 busted a racket of firms fraudulently claiming Input Tax Credit (ITC) of Rs 17 crore, said an official statement.

As per the statement, a specific intelligence was developed by the officers of CGST concerning certain bogus firms that were created solely for the purpose of generating goods fewer invoices and passing on ineligible input tax credits along the chain.

''Inspections were conducted at the registered premises of 03 bogus firms/companies namely M/s. NexGen Busicorp, M/s. XEL Informatics and M/s. GW Infotech Pvt. Ltd. registered in the jurisdiction of CGST Delhi South Commissionerate that were engaged in fake invoicing and circular trading. Incriminating documents were resumed from the premises of the taxpayers,'' the statement added.

As per the preliminary enquiry conducted so far into the transactions of these firms has revealed tax evasion of Rs 17 crore approximately. 

''The Proprietor/Director in his confessional statements has admitted his role in passing and availing fraudulent ITC without any underlying supply of goods,'' it added.

The persons behind these bogus firms have defrauded the government exchequer and committed offences specified under sections 132(1)(b) and 132(1)(c) of the CGST Act 2017 which are cognizable and non-bailable. 

Two persons namely Sanjay Kumar Srivastava and Sunil Gulati have been arrested on 17.03.2023 and they were produced before the Duty Metropolitan Magistrate following which they have been remanded to judicial custody for 14 days.

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