After the Gujarat connection in Rs 75,000 offshore income tax fraud; here is yet another tax fraud where Ahmedabad Directorate General of GST Intelligence (DGGI) officials are playing a central role. Officers Of DGGI, Ahmedabad with the support of officers of local Central GST initiated search operations in Kanpur. The search began on Dec 22, 2021.
Based on the intelligence inputs, the residential premises of partners of Odochem Industries, Kannauj, UP, located at 143, Anandpuri, Kanpur, who were supplying perfumery compounds, mostly in cash, to the said company was also searched. It was suspected that the sale proceeds in cash were secreted in the premises.
During the search proceedings at the residential premises, a huge amount of cash, wrapped in paper, has been found. The process of counting of cash has been initiated with the help of officials of State Bank of India, Kanpur, which may continue till Dec 24, evening. The total amount of cash is expected to be in excess of Rs 150 crores.
The agency proposes to seize the cash under the provisions of section 67 of CGST Act, pending further investigations. An amount of Rs 3.09 crores has been recovered so far towards tax dues. Necessary follow up action in the ongoing investigation of sensitive nature is being organised.
Search locations:
The search operations covered the factory premises of Trimurti Fragrance Pvt Ltd, Kanpur, manufacturers of Shikhar brand Pan Masala and Tobacco products and the office/godowns of Ganpati Road Carriers, Transport Nagar, Kanpur, involved in transportation of goods.
Dummy companies
The information indicated clandestine supply of goods by the manufacturer without payment of applicable tax. The transporter reportedly used to generate multiple invoices in the name of non-existent firms, all below Rs 50,000/- for one full truck load, to avoid generation of E-way Bills while moving the goods. The transporter was also collecting the sale proceeds of such clandestine supply in cash and handing it over to the manufacturer, after deducting his commission.
4 trucks seized
The officers initially were able to successfully intercept and seize four such trucks outside the factory premises, cleared from the factory without invoices and E-way Bills, which confirmed the contents of intelligence.
In the factory premises, during physical stock taking, shortage of raw materials and finished products was noticed as the finished products had been cleared clandestinely. The authorised signatory of the company has admitted to have cleared the goods without GST.
200 fake invoices, 1 crore cash
In the premises of the transporter, Ganpati Road Carriers, more than 200 fake invoices used in the past for transportation of goods without payment of GST have been recovered. The transporter has also admitted that goods were being transported without e-way bills under the cover of fake invoices and also the sale proceeds were being collected in cash, to be handed over to the manufacturer. An amount of Rs 1.01 crores in cash has been seized from the possession of the transporter.
