AHMEDABAD: Officials of the mobile squad of the state goods and services tax (SGST) department arrested five persons recently in connection with two major fake billing scams involving a cumulative tax evasion of Rs 22.49 crore.
Amongst those arrested, four Morbi residents – Kishan Aghara, Dhruv Varneshiya, Avinash Makasana and Dhaval Kultariya – were involved in tax evasion through fake billing of ceramic tiles; whereas Ahmedabad-resident, Anant Shah, was involved in fake billing of paan masala.
Arrests were made by the department as part of a mission to nab those involved in fake billing scams by illicitly obtaining input tax credit (ITC) using bogus bills and evading taxes.
In one case, mobile squad officials of SGST department intercepted a truck near Morbi. Since the bill value and stock of goods did not match, the truck was detained. Preliminary investigation revealed that the same companies had issued similar bills on various such days. Avinash, one of those arrested, was interrogated when he came to collect the vehicle, and later revealed the name of three others.
“Upon investigating these companies through raids at respective locations, and conducting forensic examination of their mobile phones, SGST department officials learnt about goods being sent to various locations within and outside Gujarat, without bills. Prima facie analysis of the data reveals that some 1,305 vehicles were used to transport ceramic tiles worth Rs 39.89 crore to locations in Gujarat, Delhi, Rajasthan, Haryana, Uttar Pradesh and others, involving tax evasion of Rs 7.18 crore,” said SGST department officials, in a statement.
In another case, the mobile squad recently intercepted and detained three vehicles transporting paan masala and tobacco, without bills and e-way bills. This raised suspicion among SGST officials, who probed the matter and learnt that the entire scam is being coordinated from Ahmedabad. “SGST department traced all the locations and raided them. Forensic examination of seized computers revealed tax evasion of Rs 15.31 crore,” reads the department statement.
All five men were produced before the additional chief metropolitan magistrate in Ahmedabad on Monday and demand for their judicial custody was made for further probe.