NANCY JAISWAL: The officers of Anti Evasion wing of Central Tax, Delhi West Commissionerate have cracked a major racket of fake invoicing of Rs.7896 crore involving fraudulent Input Tax Credit (ITC) of Rs.1709 crore, using a network of 23 shell companies, which procured and generated invoices.
The accused persons were evading tax by creating various dummy firms for the purpose of passing towards ITC by generating fake invoices. They also used banking transactions to make ITC look genuine. The accused are said to have committed offences under Section 132(1)(b) and Section 132(1)(c) of CGST Act, 2017 which are cognizable and non-bailable offences as per the provisions of Section 132 (5) and punishable under clause (i) of Subsection (1) of Section 132 of the CGST Act, 2017. Accordingly, the accused were arrested on 29.02.2020 under Section 69(1) of the CGST Act, 2017 and remanded to fourteen days judicial custody by the Chief Metropolitan Magistrate, Patiala House Court.
However, further investigation in the matter is still going on.