On the basis of intelligence given by officers of the anti-evasion, CGST, Thane Commissionerate, searches were carried out at the office premises of M/s CB Shah & Co, M/s Padmavati Enterprise and M/s Maanya Impex located Borivli West. Bhavin Bharat Shah, proprietor of Maanya Impex had created three firms in the name of his family members ie M/s CB Shah & Co, and M/s Padmavati Enterprises. Incriminating documents, purchase invoices, sales invoices issued by the three companies were recovered. Bhavin Shah, the proprietor of M/s Maanya Impex in his statement admitted that they had availed input tax credit on the basis of invoices procured from various firms along with despite no goods being supplied.
The payment for the said invoices was made through RTGS and the cash was received back after deduction of the commission of 50% of the GST involved. He has also admitted that he had issued invoices to various companies without supplying goods or services on a commission basis of 2% to 3 % of the value of goods. On verification of the documents, it was seen that the three firms had availed of the inadmissible input tax credit on the basis of invoices valued at Rs 136.38 crore and availed inadmissible credit of Rs 24.55 crore. Bhavin Shah was arrested on August 27 and produced before the Chief Metropolitan Magistrate who remanded him in judicial custody for 14 days. Further investigations in the case are in progress.
Read more at: https://www.mid-day.com/articles/mumbai-crime-fake-firm-in-borivli-busted-for-tax-fraud/21620189