The Odisha State CT & GST Enforcement Wing on Monday busted another racket involved in claiming erroneous refund. This time, a Cuttack-based fly ash unit is now under scanner for GST fraud to the tune of Rs. 4.38 crore.
Around 10 officers of State GST Enforcement Squad today raided the fly ash manufacturing unit and residence of proprietor of Maa Salara Fly Ash Bricks in the Millennium City.
“During inspection, the investigation team detected a GST fraud involving claiming of erroneous refund of Rs.4.38 crore by the unit. The said refund has been claimed under inverted duty structure,” an official release read.
The unit claimed that huge amount of Input Tax Credit (ITC) remained unutilized as the main raw material-cement is taxable at 28 percent whereas the finished product- fly ash bricks- is taxable at 12 percent. However, verification revealed that the concerned tax payer has shown fictitious purchase of cement from places like Keonjhar, Titrtol, Panikoili, Jagatsinghpur, Sukinda though the manufacturing units are located in Cuttack.
Similarly, the quantity of manufactured were also found to be disproportionate with the consumed cement.
“During investigation, large number of incriminating documents, bill books of 6 different firms were detected and seized for further investigation. It is suspected that the mastermind has arranged fake purchase invoices without receipt of cement and utilized the ITC to discharge tax and claimed refund of balance ITC. He has not utilized any e-waybill for purchase of the goods,” the release added.