Daman’s goods and service tax (GST) department unearths Rs 9.30 crore worth of ITC scam of a plastic manufacturing company.

Surat : The goods and service tax (GST) department of the union territory of Daman has issued a demand notice to recover tax amount to the tune of Rs 9.30 crore for fraudulently availing Input Tax Credit (ITC) and not submitting return under the GSTR.

Deputy Commissioner of UTGST department, Charmie Parekh issued an assessment order under section 62 of the CGST Act, 2017 against Radha Madhav Corporation Limited, owing a plastic manufacturing factory in Kadaiya in Nani Daman.

In the first week of July, the Enforcement Directorate (ED)  conducted raids in the union territory of Daman against the owners Radha Madhav Corporation Limited—run by father-son duo Anil Agarwal and Mitesh Agarwal—for illegally operating chit fund and networking company linked to the alleged financial fraud in the country.

Official sources said that the promoters of Radha Madhav Corporation Private Limited, a Chit fund and networking company in Daman, had defrauded scores of people in the union territory, Gujarat and many other states in the country. The ED had received many complaints from the victims who were cheated by the promoters of the company in the name of huge financial gains.

The ED officials seized a large amount of incriminating evidence and digital records during the raids conducted at the company and the residence of its promoters identified as Anil Agarwal and Mitesh Agarwal–father-son duo.

Earlier, the Commissioner of State Tax (ADM), Thane Rural in Maharashtra had found that Sakshi Enterprise had obtained the registration under GST by means of fraud, willful misstatement and suppression of facts. Further investigation revealed that Radha Madhav Corporation Limited had availed ITC from Sakshi Enterprise for the outward supply of goods. However, a demand of Rs 27.47 lakh worth of fraudulently claimed ITC was raised against Radha Madhav Corporation.

The UTGST department, in its notice, stated that GST registration of Radha Madhav Corporation Limited was cancelled on February 6, 2021 in accordance of sub-section (2) of section 29 of the CGST Act, 2017. The defaulter has not paid the duty liability starting from January-20 to January 21 and neither submitted any reply nor submitted any documents.

The UGST deparment has ordered the owners of the defaulter company to deposit Rs 9.30 crore within 30 days of the issuance of notice. Further investigation are going on.