The Directorate General of GST Intelligence (DGGI) Gurugram Zonal Unit (GZU), Haryana has recognized a case wherein all out ITC of more than Rs. 160 crore has been used and passed on by organization of nonexistent and counterfeit firm’s pair with different existing elements/traders/wholesalers.
In light of knowledge which was investigated and followed up on by the Gurugram Zonal Unit, it arose that a vendor, who is a shipper and discount dealer of dry organic products has benefited IGST Input Tax Credit on imports, however has additionally given obligation paid solicitations to different non-existent firms, while the merchandise (dry natural products) were sold in the open market to different retailers. Calm a couple of the organizations, to whom solicitations were given were viewed as non-existent/counterfeit (enlisted on GST entrance under various HSN), who further gave good less solicitations to pass on ITC without supply of any products deceitfully. The vendor has delivered itself to at risk under Section 122 (I) (ii) of the CGST Act, 2017, and so forth, as a Consequence of which the trader has kept Rs. 5 crore till date, extra recuperation in this matter is normal.
On the whole, 10 such phony firms busted such a long way in the examination, have falsely profited and passed on Input Tax Credit (ITC) in overabundance of Rs. 160 crore, bases on inwards from the vendor, and from other phony/dropped sources, which is under additional examination. Regulator of one such firm to whom obligation paid solicitations were given without supply of genuine merchandise by the shipper, by all appearances passed on false ITC of Rs. 26.3 crore, was recognized as Sh. Pawan Kumar Sharma. It arose through examination that Sh. Pawan Kumar Sharma is additionally owner of one more firm M/s Pawan Traders likewise engaged with passing on fake Input Tax Credit (ITC).
As needs be, Shri Pawan Kumar Sharma was captured on 13.05.2022 under the arrangements of Section 69 of CGST Act, 2017 read with proviso (b) (c) of subsection (1) of segment 132 of CGST Act, 2017 and created under the steady gaze of CMM, Patiala House Court on 13.05.2022, who requested legal authority for 14 days.
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