Telangana: Arrest Warrant Issued Against Firm Director for Alleged GST Evasion of Over Rs 5 Crore
Previous and subsequent investigation carried out by the department indicated that Mehta was the key person in the company's fraudulent business transactions.
Hyderabad: Telangana Commercial Taxes Department authorities have issued an arrest warrant against Piyush Pravinchandra Mehta, Director, A S Met Corporation, for allegedly conducting fraudulent business transactions and evading Rs 5 crore GST, an official said on Tuesday.
Based on a tip off, the officials searched residential premises of the directors of the company for two days from December 24 at Thrimulgherry, Secunderabad and seized incriminating material, State Commercial Taxes Commissioner T K Sreedevi said in a release here.
Previous and subsequent investigation carried out by the department indicated that Mehta was the key person in the company’s fraudulent business transactions.
They are dealing in trading of MS Pipes, TMT Bars, TMT Rebars, CRFH Steel coils and MS Rounds of Iron and Steel.
During the course of investigation, it was noticed that the firm between May 2018 to October 2022 issued tax invoices for supplying goods and generated e-waybills which record the movement of goods by utilising the RFID tags attached to the Lorries/Trucks while crossing the toll gates established on Highways as well as Ring Roads, as if they are actually transporting the goods to their recipients/buyers.
But subsequent investigation indicated that the vehicles on which the firm generated tax invoices and e-waybills have not crossed any of the Toll plazas between the origin of goods movement and ultimate destination point.
This clearly established that there was no movement of goods involved in those transactions, the official claimed.
“Further as per transport department data, it is noticed that the company has fooled the government by entering registration numbers of cars, passenger autos, vans, bikes in waybills in place of goods transport vehicles like lorries and trucks.
The company utilised fake tax invoices and e-waybills to claim Input Tax credit (ITC) without actual receipt of goods,” the official said,
Prima-facie, it was noticed that the company has evaded Rs. 5.89 Crores of GST by passing on ITC without actual supply of goods and availing ITC without actual receipt of goods.
Verification of incrimination material is under process and there are chances of an increase in the amount of tax evasion further, he said.
As the amount of tax evasion has crossed Rs. 5 Crores, it is being regarded as a cognizable and non-bailable offence under the provisions of the GST Act, and accordingly an arrest warrant was issued against Mehta, who is absconding.
Commercial Taxes Department has sought the help of police to trace him out .
The police have informed that the accused is under their radar and would be handed over to the department any time.
