The Anti-Evasion wing of CGST and Central Excise Mumbai Central has arrested a 51-year-old Mumbai businessman for allegedly fraudulently availing input tax credit (ITC) of nearly Rs 12.13 crore through bogus GST invoices without actual receipt of goods or services.The agency said arrested accused, Fakhruddins Dahodwala, is the key person and alleged mastermind behind M/s Sikkander & Co, operating from Chinchbunder in south Mumbai. The firm allegedly availed fraudulent ITC using invoices issued by several fake and non-existent entities. Dohadwala was arrested under various sections of Central Goods and Services Tax Act, 2017, carrying punishment of up to five years imprisonment and fine.
The investigation began after multiple references were received from various CGST formations and State GST authorities regarding suspicious transactions linked to Sikkander & Co. Authorities alleged several supplier firms which passed on ITC to the company were either fake, non-existent, or non-functional at their declared business premises.
Among the firms flagged during the probe were Lucas Infratrade LLP, which allegedly passed inadmissible ITC of Rs 50.52 lakh, Prime Trading which allegedly passed ITC worth Rs 1.99 crore, and Sysintergrated IT & Inra, which allegedly passed Rs 56.91 lakh in inadmissible credit to Sikkander & Co.
Investigators also relied on reports from CGST Mumbai East, CGST Thane, Telangana GST authorities and State GST departments which reportedly found several supplier entities to be fictitious or non-existent. Officials stated that GST registrations of many such firms had already been cancelled suo motu with retrospective effect.
During inspection conducted, officers allegedly found that Sikkander & Co. was not operating from its declared Chinchbunder premises.
Statements recorded during investigation allegedly revealed that the day-to-day operations of the firm, including sales, purchases and banking activities, were being managed by Dahodwala. Proprietor Masood Ahmad Siddiqi allegedly informed investigators that invoices and e-way bills were generated through a tax consultant on Dahodwala’s instructions.
The firm’s chartered accountant, Abdeali Jawadwala, also allegedly stated that he handled GST filings for the company since August 2024, and received OTP credentials from Dahodwala for accessing the GST portal.
According to investigators, Dahodwala failed to provide supporting documents such as purchase records, transport details, goods registers, supplier documents, invoices or evidence of actual movement of goods linked to the transactions under scrutiny.
Officials alleged that Sikkander & Co. was created as a suspicious GST entity to fraudulently avail and pass on fake ITC using bogus GST registrations.
Source from: https://timesofindia.indiatimes.com/city/mumbai/mumbai-businessman-arrested-in-rs-12cr-gst-fraud/articleshowprint/131412448.cms?val=3728
