Belagavi
In a significant development, the fake GST invoice racket involving Rs 132 crore and fraudulent input tax credit of Rs 23.8 crore was dismantled by officers of the Preventive Unit of the Central GST, Belagavi Commissionerate. The main accused, Naqeeb Najeeb Mulla, proprietor of Federal Logistics and Company, was apprehended under the provisions of Section 69 of the CGST Act-2017. Mulla, also a tax consultant, allegedly operated a scheme where he issued fake invoices without supplying actual goods or services, allowing him to unlawfully claim and pass on input tax credits.
According to Dinesh Pangarkar, Principal Commissioner of Central GST and Central Excise, Belagavi Commissionerate, Mulla’s fraudulent activities extended to creating a fictitious firm and manipulating GST returns for various clients. His modus operandi involved collecting cash from clients for GST payments but diverting these funds for personal use. He further evaded GST liabilities by utilizing fictitious input tax credits from his own firm and others under his control.
Following interrogation and examination of pertinent evidence, Mulla admitted to fabricating GST returns to misappropriate funds. The CGST officers arrested Mulla under Sections 132(1)(b) and 132(1)(c) of the CGST Act, 2017. Subsequently, he was produced before the JMFC II Court and remanded to judicial custody for 14 days.
