Govt to unfold scrapping policy for automobiles sooner: FMFM announces change in auto policy - BS-IV vehicles registered prior to March 31, 2020 to be allowed full shelf life + Addl 15% Depreciation to be allowed till March 2020 + Ban on purchase of new cars replacing old vehicles by Govt Departments liftedGovt working on solutions for home buyers and real estate promoters stuck with fund problemsFM says tax officials to be instructed not to overreach taxpayers to meet targetsNBFCs to be allowed to use Aadhar-authenticated KYC of banks: FMGovt to amend MSME Act to give ONE definition for MSME; Cabinet approval to be taken soonBank loans - Online tracking option to be given to customers for ease of knowing status + Banks to introduce one time loan settlement policyGovt decides to withdraw Surcharge on capital gains made by FPIs + Surcharge on domestic investors also guillotinedFM says All notices, including summons, by Income Tax Department to be centralised & computer-generated from October 2019 + Old notices to be either clears before Oct or to be re-generated with DIN + all notices to be cleared within 3 monthsGST - Amritsar CGST holds Annual Return Mela with practitionersSC grants relief to Chidambaram in ED case till Monday but no succour in CBI casePradhan to launch commencement of work ceremony for 10th CGD Bidding Round (See 'TOG News')TP - Company engaged in manufacturing, assembling, servicing & software cannot be held as good comparable to trading segment: ITAT (See 'TOG Latest')I-T - Where 71% of the receipts of a trust are used in furtherance of its stated objectives the same is sufficient to infer that such trust exists: HC (See 'TOG Latest')Customs - Where assessee requests for speaking order & pays duty under protest, it cannot be inferred that assessee accepted enhanced value: CESTAT (See 'TOG Latest')Central Excise - Where assessee harbored bona fide belief in respect of an issue due to conflicting precedent judgments, then extended limitation cannot be invoked: HC (See 'TOG Latest')Sabka Vishwas Legacy Dispute Resolution Scheme to be effective from Sept 01 (See 'TOG News')TP - Similarity of functions/characteristic of services rendered by comparables are indispensable for their selection for purposes of benchmarking: ITAT (See 'TOG Latest')I-T - Holding more than 20% shares in two companies is in itself insufficient to infer that loan given by one company to the other is commercial transaction: HC (See 'TOG Latest')Central Excise - Clean Energy Cess bears nature of fee & is not any duty; hence assessee is not entitled to Cenvat credit on the same: CESTAT (See 'TOG Latest')Service Tax - If assessee claims refund in bona fide before wrong authority, then reasonable course of action is to transfer such claim to that authority having jurisdiction: CESTAT (See 'TOG Latest')EPF Board to move proposal for amend scheme (See 'TOG News')Naidu urges nations to adopt Comprehensive Convention on International Terrorism (See 'TOG News')
Tax on Go
Budget 2015
Click the banner to download Documents

Rs 40 Cr ITC abuse scam busted; 2 businessmen held

By TOG News Service
Jul 19, 2019 , New Delhi

TOG NEWS SERVICE, NEW DELHI, JULY 19, 2019: THE Gurugram Zonal Unit of the Directorate General of GST Intelligence (DGGI) has arrested two businessmen, namely, Mr Anil Kumar Jain of M/s Jatalia Global Ventures Ltd, Delhi, and Mr Manoj Garg of M/s Manoj Cables Ltd. Delhi, yesterday in a case of fraudulent issuance of Input Tax Credit invoices without actual supply of goods, involving GST evasion of approximately Rs 40 crores on the taxable value of concocted supplies of Rs 210 crores. This action was a followup of similar detection of evasion of Rs 79.21 crores on taxable value of Rs 450 crores in the case of M/s MICA Industries Ltd., Delhi, M/s Satellite Cables Pvt. Lld., Bhiwadi and M/s Galaxy Metals Products in which three businessman were arrested on 14.09.2018, against whom prosecution under the GST Act has since been launched by the Department.

 This quantum of evasion and the gravity of the offence committed by Mr. Anil Kumar Jain of M/s Jatalia Global Ventures Ltd. and Mr. Manoj Garg of M/s Manoj Cables Ltd is cognizable and non bailable under the CGST Act, 2017 under the provisions of sub section (5) of Section 132 (1). Thus, both of them were arrested under Section 69 (1) of the CGST Act,2017 and produced before the Hon'ble Judicial Magistrate 1st Class (JMIC), Gurugram who remanded both to 14 days judicial custody.

In the course of investigation searches were conducted at several places during which various incriminating documents were found which evidenced issuance of fake bills/invoices in a Circular manner among the said companies without any concomitant movement of goods for such transactions thereby proving wrongful availment and utilization of fake input tax credit. The arrested persons have agreed to the same.

Further investigations are underway and the quantum of evasion is likely to go up. Officers are not ruling out the possibility of existence of several other firms which may be involved in this nexus.