Officers of CGST busted fake invoices fraud by father son duo

Arrested one for issuance of fake invoices to generate fraudulent Input Tax Credit to the tune of Rs. 15 Crores

Officers of CGST Vadodara II Commissionerate arrested one for issuance of fake invoices to generate fraudulent Input Tax Credit to the tune of Rs. 15 Crores. The accused and his father created fake firms in different cities and generate fake Input Tax Credit.

The team acting on the intelligence found one Manmohan Agrawal and his son Naman Agrawal has been engaged in the business of issuance of fake invoices without actual movement of goods to generate the fraudulent Input Tax Credit. The officers of CGST Vadodara-ll Commissionerate, Vadodara Zone searched the principal place of business of the duo and the investigation revealed that Manmohan Agrawal and his son had created 8 fake firms, which were located in Vadodara, Mumbai, Hyderabad and Bangalore. They were receiving fake invoices from other Firms and in turn were passing on the fake Input Tax Credit using 8 such fake Firms generated.

As per the press release, the investigation further revealed that the fake firms located in Mumbai, Hyderabad and Bangalore utilized the fake Input Tax Credit in tax payment of goods purchased from registered/ unregistered tax payers who removed their goods clandestinely. Further to validate the receipt and supply they had generated e-way bills using 7 trucks which were stationed at the single place (additional place of business) and had not moved. The investigation so far has revealed that they issued and received fake invoices to the tune of Rs. 100 Crores and availed, utilized and passed on fraudulent Input Tax Credit to the tune of Rs. 15 Crores.

Naman Manmohan Agrawal was arrested by the team on 24.02.2020 in violation of the CGST Act and Rules framed thereunder and under Section 69 of the CGST Act. 2017 and produced before the Special Chief Judicial Magistrate Vadodara, who had remanded him to the judicial custody. Further investigations are in progress in the matter.