The officials of the Central Goods and Service Tax (CGST) department unearthed tax evasion of approximately Rs 3 crore on Monday. The department has booked a case of fraudulent issuance of Input Tax Credit (ITC). The preventive wing officers of CGST and central excise commissionerate, Indore, carried out search at factory premises of M/S Pyrol Fuel Industries Pvt Ltd located and premises of sellers and purchasers associated with the company.
The search teams found incriminating documents and evidences of tax evasion. The investigation revealed that the promoters of company were involved in issuing fake bills/invoices to each other without actually moving the goods or making financial transactions. The officers unearthed the tax evasion of more than Rs 3 cr. The industry has deposited Rs 2.17 cr.
According to CGST commissionerate, 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 fake firms. Sources said that this might be the first such action carried out by preventive wing officers of the CGST department GST roll out in July 1 last year.