New Fake invoice case by an anti-evasion team

Press Release

Officers of Anti-Evasion, Central GST Commissionerate, Delhi East, having unraveled an operation involving availment of fraudulent Input Tax Credit on the basis of fake invoices and evasion of GST by utilizing the said fraudulent ITC to the tune of Rs. 24 crores approx. by M/s Shub Conductors LLP.

An investigation was initiated against M/s Shub Conductors LLP on intelligence that the firm has been availing fraudulent ITC on the basis of fake invoices raised by fictitious suppliers. searches were conducted in the premises of M/s Shub Conductors LLP along with the suppliers suspected of being fake. It was found that among other firms, M/s Een Een Sales Corporation and M/s A.N. Marketing had passed on fake ITC to M/s Shub Contractors. During the investigation, Shri Naresh Goel and Shri Anil Kumar Yadav, proprietors of M/s Een Een Sales Corporation and M/s A.N. Marketing respectively, agreed to have passed on fraudulent ITC to M/s Shub Conductors LLP, among other parties, by raising fake invoices without actual supply of goods. The supplier of M/s Een Een Sales Corporation and M/s A.N. Marketing was also found to be non-existent. Consequently, both Shri Naresh Goel and Shri Anil Kumar Yadav were arrested under Section 69(1) of the CGST Act, 2017, on 29.01.2020 and remanded to judicial custody.

The investigation further revealed that at least 7 firms were floated in the names of fictitious entities for the sole purpose of creating a complex network of transactions among themselves, including the transfer of money in the bank accounts to make them appear genuine. This enabled them to raise fake invoices to manufacturers such as M/s Shub Contractors LLP, who availed the fraudulent Input Tax Credit without actual receipt of goods. The money received in bank accounts was then withdrawn and routed back in cash to recipients. Thus, the operation involved not only a violation of GST law but also a laundering of money.

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