Sonepat security firm in GST net for Rs 2.34-cr tax evasion

ROHTAK: The Central GST Division, Rohtak, has detected an evasion of service tax to the tune of Rs 2.34 crore by M/s Osaka Security and Housekeeping Services Pvt Ltd, Sonepat, which provides security and manpower to a number of educational institutes and industrial units.

Sunit Dhawan
Tribune News Service
Rohtak, February 15

The Central GST Division, Rohtak, has detected an evasion of service tax to the tune of Rs 2.34 crore by M/s Osaka Security and Housekeeping Services Pvt Ltd, Sonepat, which provides security and manpower to a number of educational institutes and industrial units.

Official sources said the period during which the company evaded service tax pertained to 2013-17 and the tax officials suspected that its owners prepared two sets of balance sheets in a bid to hoodwink the authorities concerned.

Talking to The Tribune here on Friday, GST Commissioner Vijay Mohan Jain said the company’s director was summoned to the GST Commissionerate in Rohtak and he paid Rs 72 lakh.

“His firm had earlier paid Rs 46 lakh. Hence, Rs 1.18 crore has been recovered from the firm and it has been given two weeks to deposit the balance amount as well as the interest penalty,” the Commissioner said.

In another case, the Central GST Division, Rohtak, has detected a GST fraud involving issuance of fake invoices running into crores and availment of bogus input tax credit (ITC).

Additional Commissioner (GST) Mahender Singh said M/s Trivano International, Bahadurgarh, was found to have claimed ITC on invoices issued by a non-existent firm, M/s Balaji Timber.

“M/s Trivano International used the ITC so availed for the payment of the GST on goods stated to be exported to Dubai through Jawaharlal Nehru Port, Mumbai,” Singh said, maintaining the total credit amount is estimated to be Rs 4.99 crore.

“The bank account of the firm was frozen. However, the proprietor voluntarily made a payment of Rs 4.56 crore against the refund amount of nearly Rs 5 crore. Efforts are being made to recover the balance amount along with the interest and penalty,” said the Additional Commissioner.

Inquiries made by the Preventive Wing of the Mumbai Customs revealed that the goods had been misdeclared and the value was highly inflated in the export documents.

The description (of the goods being exported) was given as “articles of cement concrete specially designed for radiation”, whereas on testing, the same was found to be “ordinary rotten cement-concrete bricks”.

The Mumbai Customs Department has also registered a case against Trivano International for the violation of various provisions of the Customs Act, 1962.

Rs 72 lakh cleared

M/s Osaka Security and Housekeeping Services Pvt Ltd, Sonepat, provides security and manpower to a number of educational institutes and industrial units
Official sources said the period during which the company evaded service tax pertained to 2013-17 and the tax officials suspected that its owners prepared two sets of balance sheets in a bid to hoodwink the authorities concerned
GST Commissioner Vijay Mohan Jain said the company’s director was summoned to the GST Commissionerate in Rohtak and he paid Rs 72 lakh

Fake invoices raised

In another case, the Central GST Division, Rohtak, has detected a GST fraud involving issuance of fake invoices running into crores and availment of bogus input tax credit (ITC). Additional Commissioner (GST) Mahender Singh said M/s Trivano International, Bahadurgarh, was found to have claimed ITC on invoices issued by a non-existent firm, M/s Balaji Timber.