Kohima: A director of two mining companies has been arrested in Nagaland in connection with an alleged GST fraud involving Rs 53.28 crore, officials said on Monday.
The arrest was carried out by the Anti-Evasion Unit of the Central GST Commissionerate, Dimapur, following an investigation into the fraudulent availment of input tax credit through the issuance and receipt of fake invoices without any actual supply of goods, they said.
The accused has been identified as Atiqur Rahman Barbhuiya, who serves as director of Bendangtoshi Mining Pvt Ltd and Kevitho Mining Pvt Ltd, firms involved in the supply of coal and coke, officials said.
In a statement, Central GST Commissionerate said Barbhuiya was found to have issued and received invoices without actual supply or receipt of goods. During inspection, both firms were found non-existent or non-operational at their declared premises.
Scrutiny of GST returns revealed that fake invoices were issued and received without any actual movement of goods, leading to the fraudulent passing on and availing of Input Tax Credit (ITC) amounting to Rs 27.52 crore and Rs 25.76 crore respectively.
The Commissionerate said the taxpayer failed to produce supporting documents, including e-way bills, transport records and corresponding bank statements, in connection with the invoices issued and received.
Based on the findings, Barbhuiya was found to have committed offences under Section 132(1)(b) of the CGST Act, 2017, relating to the issuance of invoices or bills without the supply of goods or services, and Section 132(1)(c), which pertains to the fraudulent availment of Input Tax Credit. Officials said the offences are cognisable and non-bailable.
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He was accordingly arrested on January 10 in Dimapur and produced before the court.
This is the second such case in recent months in which CGST Dimapur has arrested individuals for tax fraud and violations of the GST Act. Further investigation is underway, officials added.
