Firm owner booked for bogus tax refund claims

Tribune News Service

Panipat, July 11

The police on Thursday — on the recommendation of the State and Excise Department — booked the proprietor of a non-existing firm allegedly for revenue loss of Rs 30.06 crore to the state exchequer by bogus input tax refund claims in 2016-17 and 2017-18.

The firm had been registered under the VAT Act on the basis of fake documents.

According to sources, the scam came to light during the inquiry of Gurugram-based firm M/s Vipin Enterprises.

The officers found that one more firm, Paras Enterprises, had committed fraud with the government through bogus business with Vipin Enterprises. The firm had been registered under Haryana Value Added Tax (VAT) Act in 2016 in the name of Tarun Kumar of Dayalpur-Sherpur of Delhi. It issued fake purchase and sales bills of yarn and claimed wrong input tax credit (ITC).

During the preliminary inquiry conducted by the department’s officers, Tarun Kumar was not traced at his registered address. Besides, the mobile number declared by Tarun Kumar was found to be in the name of some Govind Sharma, said sources.

Investigations also revealed that 41 more firms had given the same number as the contact number of their proprietors during registration under the VAT Act.

As per the details of online returns filed by Paras Enterprises during 2016-17, it declared its purchase of Rs 18.89 crore (within the state) and Rs 3.43 crore (outside the state). The total sales were of Rs 18.56 crore. In 2017-18, it declared purchase of Rs 9.67 crore (within the state) and Rs 49.65 crore (outside the state) and total sales of Rs 9.69 crore.

Paras Enterprises and its linked firms had claimed wrong input tax credit, commonly called tax refunds, worth Rs 17.33 crore which is a direct loss of revenue to the state exchequer.

The dealer’s returns reflected inter-state purchases worth Rs 53.08 crore but the ‘Form C’ amounting to Rs 155.2 crore was issued to the firm pointing to a minimum revenue loss of Rs 30.6 crore to the government as no tax was paid by the dealer for the corresponding sales.

Raja Ram Nain, Deputy Excise and Taxation Commissioner (Sales), and Deputy Commissioner, State Tax (GST), said the matter was probed and no person in the name of Tarun Kumar was found at the address given at the time of registration.

The matter has been sent to the Chandnibagh police station to register a case against Tarun Kumar, proprietor of Paras Enterprises, he added.

Inspector Sandeep Kumar, SHO, Chandnibagh, said a complaint was received from the State Excise and Taxation Department against Tarun Kumar.

Wrong information furnished 

• Tarun Kumar, proprietor of Paras Enterprises, was not traced at his registered address. 
• Besides, the mobile number declared by Tarun Kumar was found to be in the name of some Govind Sharma.
• Investigations revealed that 41 more firms had given the same number as the contact number of their proprietors during registration under the VAT Act.