Indore (Madhya Pradesh): The officers of the Preventive Wing of Central Goods and Service Tax (CGST) department detected GST evasion of about Rs 15 crore in the form of Input Tax Credit (ITC), after searching four premises of a bitumen company.
Two directors of the company were arrested on Tuesday and sent to 10-day judicial custody till January 17.
According to official information, the CGST and Central Excise Commissionerate, Indore, arrested Kartik Agrawal and Sheel Panchal, directors of city-based company M/S Pyrol Fuel Industries Private Limited, for evading goods and services tax (GST) to the tune of approximately Rs. 15 crore.
Investigation found that both directors had availed fraudulent Input Tax Credit (ITC) from bogus, non-existent firms without the actual receipt of goods. The fraudulent ITC was used to discharge their outward tax liabilities in clear violation of Section 16 of the CGST Act, 2017. Despite multiple summons issued by the department under Section 70 of the CGST Act, 2017 the accused failed to comply.
Subsequently, the officers of the Preventive Wing of CGST’s Central Excise, Indore Commissionerate searched four premises of M/S Pyrol Fuel Industries Private Limited on Monday. On the basis of evidence gathered, Agrawal and Panchal were found to be the masterminds behind the fraud and were arrested under Section 69 of the CGST Act, 2017.
They were produced before the jurisdictional magistrate, who remanded them to judicial custody till January 17. However, further investigation is on in the case. Sources said that the company dealt in bitumen, supplying it to road construction contractors. The names of some top road construction contractors have also surfaced in the case.
