Mumbai: Alleged of availing the tax credit in a fraudulent manner, the CGST Mumbai Central Commissionerate on Thursday has arrested the directors of two companies.
Shah Brothers Ispat Pvt Ltd, Director, Sanjiv Pravin Mehta, V N Industries, Director, Vinaykumar D Arya were arrested for availing of ineligible credit of Rs. 5.20 crore and Rs. 2.03 crore, according to News On Air.
The probe has unveiled that the organizations were only transferring invoices for so-called sale and purchase.
The investigation team was able to find only paper and invoice movement.Buy no records of actual sale or purchase of goods was found.
According to the investigation team, the exchanges were done with a wrong intention to defraud the exchequer by opening Letters of Credit on fake purchase transactions.