Pawan Garg , DETC, Ludhiana division & Magnish Sethi ,AETC, Fatehgarh Sahib addressing media persons at Fatehgarh Sahib on June 11, 2019
First arrest in State by State Excise department in bogus billing scam worth Rs.14.26 Crore
Fatehgarh Sahib. June.11.
The district Excise and Taxation department has unearthed bogus billing tax evasion scam worth Rs.14.26 Crore with the arrest of one Mitha Ram resident of village Munderian near Amloh town, who was the king pin of the tax evasion scam and presented before duty magistrate, who send him in judicial custody.
Addressing the media persons Pawan Garg Deputy Excise and Taxation Commissioner (DETC) Ludhiana division and Magnish Sethi Assistant Excise & Taxation Commissioner (AETC) Fatehgarh Sahib said that they were getting information bogus billing business in Mandi Gobindgarh, known as steel town of India. They said today they inspected one Parvati Steel Rolling Mills Mandi Gobindgarh and further the house of one Mitha Ram partner. DETC said that they impounded a lap top of Mitha Ram and detected the account of five firms which Mitha Ram was operating on papers only on the name of M/s Sarpanch International as owner, Raj Steel with his brother as owner, A.K. International wife as partner, Parvati Steel with 50% share and Janaat Steel having 50% share with one Bhushan Kumar. He said sale of Rs.80 Crore through bogus billing and tax evasion worth Rs.14.26 Crore was detected, which is direct loss to State exchequer.
DETC said Mitha Ram was summoned to AETC office today and he made a written statement that he was involved in bogus billing scam. He used to get bills and further issue the bills without sale and purchase of material. He said he was arrested u/s 132 and presented before Magistrate, who send him in judicial custody. They claimed that this is first of its kind arrest by State officials in bogus billing scam.
DETC said that the department has identified all those, who issued and received the bogus bills and they will be summoned and tax evasion will be recovered.
It is worth mentioning that the business of bogus billing ( purchase of bills only without purchase of material and further issuing bills without movement of material) and passing of truck without bills is flourishing in Mandi Gobindgarh town in connivance with high ups and local authorities. This arrest is only tip of the ice berg as so many people are doing this business freely without any fear.