 "Frauds, Fraud investigation")
The CGST Mumbai Zone has arrested the director of a Navi Mumbai-based firm that allegedly availed and passed on Input Tax Credit of Rs 81 crore using bogus invoices to the tune of Rs 479 crore, an official said on Monday.
A CGST release said searches were conducted at various locations acting upon intelligence garnered by deploying data analytics tools, which found that Fantasia Trade Pvt Limited was allegedly indulging in irregularities under section 132 of the Central Goods and Services Tax Act, 2017.
The director of the firm was arrested on February 18 and remanded in judicial custody for 14 days, the release stated.
The release said CGST Mumbai Zone had, under a special drive, booked more than 730 cases of tax evasion, detected tax evasion of Rs 6,380 crore, recovered around Rs 700 crore and arrested 56 persons in the last six months.
Advocate Prasannan Namboodiri, representing Fantasia Trade Private Limited, has stated that all the transactions were genuine.
The department has failed to take note of the transportation of material, the movement of goods, payment of invoices to transporters, warehouses, godown keepers etc. Hence no offence is made out under Sections132 (1)(b) and 132 (1)(c) of the CGST Act, which led to the arrest of the director, he stated.
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