e-NAM - Govt holds workshop to bolster agri logistics (See 'TOG News')Innovative technology holds key to bridging economic gap: MoS (See 'TOG News')Technology should be low-cost & inclusive: Prasad (See 'TOG News')Atal Innovation Mission & UNDP host Youth Co:Lab Innovation Challenge (See 'TOG News')TP - Transfer pricing adjustment which does not hold test of legal sanctity as per provisions of Section 144C(10), is invalid: ITAT (See 'TOG Latest')I-T - Section 46A is charging provision for gains arising from buy-back of shares & would prevail over general provision u/s 45 for taxing capital gains arising on transfer of capital asset: ITAT (See 'TOG Latest')Customs - When penalty is imposed on partnership firm, separate penalty cannot be imposed on its partner: CESTAT (See 'TOG Latest')Central Excise - Fraudulent availment of credit without receipt of inputs - There is an entry at Information Collection Centre of the State VAT showing that goods passed through it to reach assessee's factory - Credit cannot be denied: CESTAT (See 'TOG Latest')APEDA sets up 186 labs to test Agri products (See 'TOG News')DPIIT adopts paperless licensing for Petroleum service stations (See 'TOG News')TP - When margin adopted in APA is within permissible range with margin computed by taxpayer, then ALP adjustments merits computation accordingly: ITAT (See 'TOG Latest')I-T - Assessment framed & penalty proceedings deserve to be upheld, where assessee does not submit requisite evidence to explain expenses incurred: HC (See 'TOG Latest')Central Excise - There is no bar in Section 4(1) of CEA from there being two transaction values for the same product & for the same receiver: CESTAT (See 'TOG Latest')Service Tax - Recipient of service can claim refund on the strength of the STTG certificate issued by Indian Railways: CESTAT (See 'TOG Latest')Prasad to inaugurate NIC TechConclave 2020 (See 'TOG News')INTL - Non existence of PE of non-residents to whom payments have been made by Indian entity, does not warrant deducting TDS u/s 195: ITAT (See 'TOG Latest')I-T - Scope of term 'relative' as per Section 56 of the I-T Act, includes the relationship of brother-in-law - Cash gift received from such relative cannot be treated as not genuine: HC (See 'TOG Latest')Customs - Request to cross examine Departmental officers - New adjudicating authority cannot deny such request based solely on such request being rejected by predecessor officer: CESTAT (See 'TOG Latest')VAT - AO must independently apply mind while ascertaining classification of goods & eligibility to exemption, rather than relying solely on clarification issued by superior officer: HC (See 'TOG Latest')SVLDRS, 2019 needs to be extended further (See 'THE INSIGHT')
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.