GST fraud: Three get 5-year jail
Fatehabad, January 19
In a major decision in the Goods and Service Tax (GST) fraud case, a Fatehabad court sentenced three persons David Masih, Sant Kumar and Saubhagya to seven years jail term and another person Kamal Bansal to two years imprisonment, today.
The court of Chief Judicial Magistrate Amberdeep Singh convicted the four persons in the case of claiming input tax credit by floating bogus and shell firms. The convicts David Masih, Sant Kumar and Saubhagya were convicted on the charges of cheating under Sections 420, 467, 468, 471 of the IPC and imposed Rs 50,000 on each of the accused while the Kamal Bansal was convicted for forgery who was also imposed a fine of Rs 10,000.
As per the case, police registered criminal case against David Masih, Sant Kumar, Saubhagya and Kamal Bansal who had conspired together to open shell firm M/s. Paradise International in the shop of accused Kamal. They opened a bank account in Dena Bank and cheated the government by making false tax claims. They floated bogus/shell/fake firm namely, M/s. Paradise International, Bansal Complex, near Shiv Mandir, Ukalana Road, Bhuna in Fatehabad district. The Haryana Excise and Taxation Commissioner lodged an FIR on January 5, 2019. The firm M/s. Paradise International was registered on August 3, 2018 under GST Act, 2017 with GSTIN No. 06AYKPM1731A1ZW.
However, during enquiry, no firm was found at above mentioned address as it was floated in papers only. While the ID and mobile number and date of registration were same, but no business premises were found at the given address on physical verification. The probe indicted that all these firms were floated for the purpose of collusion, connivance, fraudulent and nexus with each other on a same ID proof.
The probe revealed it was found that M/s. Paradise International raised 89 bills amounting to Rs 21,68,64,895 with tax liability of Rs 1,20,75,425, but it was adjusted by him on purchase of 196 bills against the amount of Rs 13,52,30,242 and claimed bogus ITC of Rs 1,28,82,326 which is direct loss to government revenue. Probe stated the firm had committed fraud by showing the false intra/inter-state sales/purchases on bogus documents and causing the loss to the Goods and Service Tax Department through this systematic crime.
