Hyderabad: Sleuths of the anti-evasion wing of the Medchal wing of the Central Excise and Service Tax Commissionerate booked a second case against Aavya Enterprises for allegedly raising a fake invoice to the tune of Rs 5.76 crore. Aavya Enterprises along with four other entities was earlier booked for creating fake input credits.
Company proprietor Amit Mittal was arrested on Thursday and sent to judicial remand for 14 days.
Aavya Enterprises allegedly created fraudulent input tax credits (ITC) based on fake invoices received from nine different entities located in Kolkata and Hyderabad, without actually receiving any goods. The fraudulent ITC taken was utilised by Aavya Enterprises for evasion of GST payable by them on their supplies of aluminium/copper scrap which were procured from open market/ unregistered suppliers. The metal scrap was sold to manufacturers of alumininium or copper rods and castings.
The commissionerate said the company was in violation of Section 132 (1) & 132 (5) of CGST Act, a cognizable and non-bailable offence.
The case against Aavya Enterprises was in continuation of the cases registered against four firms, Hindustan AAC products, Aitri Engineers & Contractors Ltd, Sri Krishna Castings and Shree Metals.
The total amount of fraudulent ITC raised based on fake invoices and in turn utilised to allegedly evade GST by Aavya Enterprises was Rs 5.76 crore, the commissionerate said. The total value of goods involved in this bunch of cases was about Rs 143 crore and the total fraudulent input tax credits involved Rs 25.74 crore....