As per news gathered the officers of Central GST, Vadodara-I Commissionerate, have busted a syndicate of illicit/clandestine clearance of goods under guise of invoices/E-way bills issued on the GSTIN of fake/dummy firms situated at Surat, Ahmedabad, Bhavnagar, Mumbai etc. on the basis of information gathered through specific intelligence and further data mining / analysis on GSTN and E way bill portals.
The Revenue officers have booked a case against the tax evader firm M/s. M. K. Traders having their Principal Place of Business at Vadodara regarding Illicit/clandestine clearance of taxable goods without issuing of invoice and consequential non-payment of GST thereon amounting to about Rs. 73.89 Crore.
As reported, the tax evader firm were indulged in illicit/clandestine clearance/supply of taxable goods, i.e. M. S. Scrap/ S. S. Scrap under the guise of E-way-bills of other registered but fake units. From preliminary scrutiny of the seized documents, the data/information available on E-way Portal/GSTN portal, it is found that M/s M. K. Traders, Vadodara has used credentials/GSTIN of 23 fake firms and prepared invoices and E-way bills of these firms and cleared its goods under cover of invoices/E-way bills shown to be prepared by these fake firms.
As reported, in total the tax evader firm has illicitly cleared goods amounting to Rs.432.51 Crones (approx.) involving GST to the tune of Rs. 73.89 Crore (approx.) without cover of legal tax invoice and without payment of applicable GST.
It may be noted here that Illicit/clandestine clearance of goods without issuing of invoice and without payment of GST is an offense under Section 132 (I) (a) of the CGST Act, 2017.
The main person of M/s M. K. Traders, dealing with all operational activities of the firm, has been arrested on 07.11.2020 and was produced before the Honble CJM, Vadodara on 09.11.2020, after the medical examination and COVID test. He has been sent to judicial custody by the Hon’ble Chief Judicial Magistrate. Further investigations are in progress.
It is important to note here that firm action has been taken by Vadodara Zone in this financial year i.e. 2020-21, has resulted in detection of 83 cases involving GST evasion of 240 Crones and 5 accused have been arrested so far.
***
[rainbow]Don’t miss the next GST Update / Article / Judicial pronouncement[/rainbow]
Subscribe to our newsletter from FREE to stay updated on GST Law
Resolve your GST queries from national level experts on GST free of cost.
TW Editorial Team comprises of team of experienced Chartered Accountants and Advocates devoted to spread the knowledge of GST amongst the various stakeholders.
