In a major action, the Directorate General of GSTIntelligence (DGGI) has busted a racket of exporter companies involved indefrauding the exchequer through fraudulent claims of input tax credit (ITC)and cash refund of around Rs 61 crore.
The officers of DGGI estimated that a few exporter companieswere engaged in fraudulent availing of ITC on the invoices of non-existing andfictitious firms or such firms which apparently do not have any purchasesthemselves.
The ITC so availed was utilized to pay IGST on the exportgoods, which was thereafter claimed as cash refund. Thus, the governmentexchequer was put at double loss -- on one hand ITC was obtained on goods whereno tax was paid and on the other hand IGST paid from such fraudulently availedITC was obtained as cash refund.
The amount of IGST refund obtained is estimated to beapproximately Rs 61 crore.
DGGI, Headquarters searched the exporter companies andresidence of their owner as well as premises of various supplier companies onMarch 6. These suppliers companies were found to have supplied only bills tothese exporters, without supply of goods. The exporters had taken ITC on thesefake bills and had taken refund of the same as the goods were shown to be exported.
The controllers of the export firms were arrested on March 6by the DGGI. However, the Ludhiana based owner of the supplier firms was on therun and was untraceable. He was not appearing for investigations even aftervarious summons.
The said owner of supplier firms appears to be a habitualeconomic offender and numerous cases have been made against him and hiscompanies. Earlier, he had also been put under preventive detention underCOFEPOSA in a case of commercial fraud investigated by the DGRI.
A reliable input was received that the said person washiding in Shimla and was staying at a renowned Five Star Hotel. A team ofofficers was deputed to visit Shimla, which traced him in the said Hotel andarrested him in the morning of October 7. Subsequent upon his arrest, he wasproduced before the competent court and was sent to judicial custody at TiharCentral Jail for 14 days.
Further investigations in the matter are in progress.
(With inputs of IANS)