Mumbai Crime: Fake firm in Borivli busted for tax fraud

Updated: Aug 28, 2019, 07:44 IST | Diwakar Sharma

Bhavin Bharat Shah, proprietor of Maanya Impex had created three firms in the name of his family members ie M/s CB Shah & Co, and M/s Padmavati Enterprises

This picture has been used for representational purpose
This picture has been used for representational purpose

On the basis of intelligence given by officers of the anti-evasion, CGST, Thane Commissionerate, searches were carried out at the office premises of M/s CB Shah & Co, M/s Padmavati Enterprise and M/s Maanya Impex located Borivli West.

Bhavin Bharat Shah, proprietor of Maanya Impex had created three firms in the name of his family members ie M/s CB Shah & Co, and M/s Padmavati Enterprises.

Incriminating documents, purchase invoices, sales invoices issued by the three companies were recovered.

Also Read: Mumbai Crime: City banker booked by Punjab police for fraud

Bhavin Shah, the proprietor of M/s Maanya Impex in his statement admitted that they had availed input tax credit on the basis of invoices procured from various firms alongwith despite no goods being supplied. The payment for the said invoices was made through RTGS and the cash was received back after deduction of commission of 50% of the GST involved. He has also admitted that he had issued invoices to various companies without supplying goods or services on commission basis of 2% to 3 % of the value of goods.

Also Read: Mumbai Crime: Gold loan fraud busted, 6 arrested for duping banks

On verification of the documents, it was seen that the three firms had availed of inadmissible input tax credit on the basis of invoices valued at Rs 136.38 crore and availed inadmissible credit of Rs 24.55 crore.

Bhavin Shah was arrested on August 27 and produced before the Chief Metropolitan Magistrate who remanded him in judicial custody for 14 days. Further investigations in the case are in progress.

Also Read: Mumbai Crime: One held in Rs 5 crore fraud case; kingpin wanted

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