GST: Tax officials make first arrest

The arrest has been approved by Commissioner, Mumbai Central, K N Raghavan and executed by Additional Commissioner Manpreet Arora, Assistant Commissioner Anand Gokhle and Superintendent Parecha.

In a first, the tax authorities have arrested directors of two firms under the goods and services tax (GST) provisions. The Central Board of Excise and Customs (CBEC) on Wednesday arrested Sanjiv Pravin Mehta, director of Shah Brothers Ispat Pvt Ltd, and Vinaykumar D Arya, Director of VN industries, Darukhana, Mumbai, for availing ineligible credit of Rs 5.20 crore and Rs 2.03 crore, respectively.

The 2 firms allegedly indulged in only paper/invoice movement and no actual goods changed hands, tax officials said.  As per officials, this was done prima facie with malafide intention to defraud exchequer and banks by opening LCs (letters of credit) on fake purchase transactions. This is first arrest in India after implementation of GST for fraud. The arrest has been approved by Commissioner, Mumbai Central, K N Raghavan and executed by Additional Commissioner Manpreet Arora, Assistant Commissioner Anand Gokhle and Superintendent Parecha.

source:http://indianexpress.com/article/business/economy/gst-tax-officials-make-first-arrest-5082165/

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