Surat CGST arrested two for fraud through non existing and bogus firms

Surat CGST Commissionerate unearthed a case at fraudulent availment of Input Tax Credit (ITC) through various non-existing and bogus firms. During investigation the team found two persons Rajesh Mundra and Kamal Kishore Mundra both brothers took GST registration for 16 bogus/fake firms namely M/s Rumi Overseas, M/s Meenaxi Enterprise and M/s Kasshish Fashion an others by using documents of other persons to avail and pass on ITC without actual receipt/supply of goods.

As per the release, the investigation has revealed that these 16 firms operated/controlled by Mundra brothers have availed fake ITC to the tune of approx Rs. 15.50 Cr. These firms have utilized ITC to the tune of Rs. 2.75 crores for payment of IGST on exports under claim of refunds and have passed on ITC to the tune of Rs. 7.75 crores (Approx.) to others. Remaining ITC to the tune of about Rs. 5 crores is still lying unutilized. The team further investigate to identify other such fake firms controlled and operated by them.

During investigation it comes to the notice of the team that, in the past Kamal Kishore Mundra and Rajesh Mundra were found involved in Customs fraud and were arrested by DRI also. Rajesh Mundra was also arrested by SGST Authorities recently this year (February 2020) for similar GST fraud in use of different set of hrms operated by them.

The evidences gathered by the team during investigation make it evident that both of them have availed & utilised fraudulent ITC to the tune of Rs. 15.50 Crores and thereby committed offences as provided under Section 132(1)(b) & (c) of the CGST Act 2017. This is punishable with imprisonment for a term which may extend to 5 years and with fine. Such offences are cognizable and nonbailable and hence they have been arrested by the team under section 69 of the CGST Act. 2017.

Rajesh Mundra and Kamal Kishore Mundra have been taken to Civil Hospital Surat for COVID-19 test in light of High Court of Gujarat judgement in R/writ Petition (PlL) No. 42 of 2020 dated 27.03.2020. Thereafter they will be produced before the Chief Judicial Magistrate.