Sandeep Arora, managing director of High Ground Enterprises (HG-EL), who availed of input tax credit (ITC) amounting to Rs 77 crore without supply of goods and services, by submitting fake invoices, was arrested by Directorate General of Goods and Services and Tax Intelligence (DGGST). HGEL allegedly availed of ITC originating from shell companies without actual receipts of goods and services.
DGST Mumbai received information from GST Kolkata unit that RavidMultiventures and KavikaMultiventures Pvt Ltd had fraudulently passed on fake ITC by issuing fake invoices without actual supply of goods or services.
The Kolkata unit early this year arrested Sanjay Kumar Bhuwalka and Heera Jain of RavidMultiventures and KavikaMultiventures. On the basis of this, GST Mumbai started investigations against Shalini Publicity and Creative Pvt Ltd and Marut Creative Infra Pvt Ltd, as they had allegedly availed of ITC on the basis of invoices issued by Ravid and Kavika.
Shalini and Marut had allegedly issued invoices to HGEL without actual supply of goods or services. During investigations, Arora’s HGEL name cropped up. The other director, Chintan Kapadia, admitted to GST officials that his company had wrongly availed of ITC without actual supply of goods, and had given a false declaration showing fictitious stock statements of banks, and had made a false inventory of goods.
Several officials from the companies stated that they did not deal with HGEL, but yet it submitted bogus documents of their companies. It transpired that major suppliers of HGEL were shell companies and Arora was the mastermind of the fraud.
