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GST - DGGI arrests businessman in Rs 5 Crore ITC fraud case

Published: Jul 16, 2019

By TIOL News Service

NEW DELHI, JULY 16, 2019: The Directorate General of GST Intelligence (DGGI), Gurugram Zonal Unit, has arrested one person namely Mr Ajit Jindal, Proprietor of M/s. Shree Balaji Enterprises, Delhi. The said Firm had taken ITC fraudulently to the tune of more than Rs 5.06 crore involving invoice value of Rs 28.11 crore on the strength of invoices issued by fake firms. The said firm thereafter, utilized fraudulently taken ITC to discharge their GST liability against the outward supply, with an ulterior motive to defraud the Government Exchequer.

Thus, Mr Ajit Jindal has committed offences under the provisions of Sections 132 (1) (c) of the CGST Act,2017; which are cognizable and non-bailable offences under Section 132(5) of the CGST Act,2017, being punishable under Section132(1)(i) of the CGST Act, 2017. Consequently, Mr Ajit Jindal was arrested on 12.07.2019 under Section 69(1) of the CGST Act, 2017, following which he was produced before the Chief Judicial Magistrate, Gurugram. The Chief Judicial Magistrate, Gurugram has sent Mr Ajit Jindal to Judicial custody of 14 days.

Further investigations in the matter are in progress.