Mangaluru: GST officials arrest 2 scrap dealers for fake invoices fraud worth Rs 83 crore

Bellevision Media Network

Mangaluru, 10 Jun: The officers of the Anti-Evasion wing of Mangaluru Central GST Commissionerate booked an offence case of fake invoices and evasion of GST against M/s Thouheed Scrap Dealer and M/s M K Traders.

 

The said firms had taken fraudulent input tax credit (ITC) based on ‘Fake Invoices’ received from different firms/entities, without actual receipt of the goods. The fraudulent ITC taken was utilized by them for evasion of GST payable by them on their supplies of metal scrap, procured from local unregistered dealers without payment of GST, to the manufacturers of Aluminium/MS/Copper- Rods/Ingots/Castings etc. They are also involved in raising fake invoices to transfer fake ITC credit further in the fake invoice chain. The offence involved falls under the cognizable and non-bailable offence as per provisions of Sec 132 of the CGST Act, attracting inter alia, the provisions for arrest under Sec 69 of CGST Act.

 

Sh P K Abdul Raheem, proprietor of M/s Thouheed Scrap Dealer and Sh Abdul Khadar Kuloor Chayebba, proprietor of M/s M K Traders were arrested here on Sunday, June 9. The total amount of fraudulent ITC taken and utilized based on the fake invoices by M/s Thouheed Scrap Dealer and M/s M K Traders is estimated to be Rs 15 crore and the total value of goods involved in this case estimated to be Rs 83 crore.

 

Investigation is in progress to trace further leads to identify other firms involved in the fake invoice racket.