News Update

PM, V-P to hold straight talk with All States’ Governors on worsening COVID-19 situationJustice Chandrachud inaugurates portals for judgements, e-filing 3.0Indian industrial output contracts 3.6% in FebUnidentified gunman shoots dead oner person & seriously injures another in Paris hospitalMarch retail inflation rises to 5.52%GST - 'Air Springs' act as shock absorber designed specifically for Motor Vehicles - rightly classifiable under CTH 8708 attracting @28% and not under CTH 4016 @18%: AARGST - 'Polypropylene Non-woven Bags' is classifiable under HSN 3923 at 18% and not at 5% under 6305: AARIndian regulator grants nod to Russian Sputnik V vaccineGST - 'Wheat' imported is destined to importer's factory for further processing and it is not to the primary market - Therefore, services of loading, unloading, packing, storage or warehousing is not entitled to exemption under 12/2017-CTR: AARMassive blaze at Russia’s historic St Petersburg factory; dozens evacuatedST - SVLDRS - Disagreement over estimated amount - No specific record made available by Revenue that communication of hearing was sent on 'email id' or via 'SMS' - SVLDRS-3 set aside: HCCus - Issue is purely contractual between petitioner, on the one hand and private respondents on the other - In such a case, it would not be open to the Writ Court to issue any Mandamus: HCPresident Kovind discharged from AIIMS after bypass surgeryGST - All stakeholders are treading in the new GST regime with uncertainties as the path is comparatively unfamiliar, unmarked and unpaved - Order of detention is an example of such uncertainty: HCSoaring COVID-19 cases - Drug Inspectors to monitor stocks of RemdesivirVAT - Bill of Entry cannot be regarded as title to goods as per provisions of Customs Act: HCI-T - Provisions of sec. 2(22)(e) are not applicable when assessee is not a shareholder: ITATRising COVID-19 cases - India embargoes export of Remdesivir and its API
ITC fraud - Gandhinagar CGST finds 68 fake units linked to Mumbai-based corporate

By TIOL News Service

AHMEDABAD, MAR 04, 2020: EAGLE-EYED analysis of taxpayers' data in the server has begun to strengthen the hands of Revenue Administration. A studious exercise was recently undertaken by the CGST officers in Gandhinagar. On the basis of details downloaded from ADVAIT (Advance Analysis of Indirect Taxes), AIO, E-way bill portal, it was noticed that many units had abnormally high turnovers whereas they had taken registration for trading of agriculture products and bullions. On further analysis, it was found that a good number of them were interconnected. They were suspected of not only circular trading to artificially enhance turnover, but also passed huge amount of ITC without supplying any goods.

Accordingly, searches were conducted on the premises of 16 firms registered with the Commissionerate. They were shown working at Kalol, Harji & Manek Chowk. During the course of search, it was found that, no activity was carried out from these premises and most of them were found to be closed and only boards displaying the name and GSTIN of the units, were found.

During the search at premise of Abans Enterprises Limited, several records in the form of sale and purchase were found. Apart from these documents, rubber stamps of 40 companies, blank letter pads of 12 companies not registered at the premise were also found. Further, six blank lorry receipt books and huge quantify of blank weighment slips of two firms were also recovered. Searches conducted at the transporter mentioned in the blank lorry receipts books and blank weighment sips revealed that the transport company and weigh bridge are not in existence.

Prime facie, it was found that there were around 68 units involved in the entire scam and almost all of them were directly or indirectly connected to a large corporate group of Mumbai. They had passed on ITC to the tune of Rs 720 Cr without tangible supply of goods. Probe is on and is likely to throw more lights on the scam.