As part of its ongoing enforcement drive against fraudulent Input Tax Credit (ITC) claims, the officers of Anti-Evasion Branch of the Central Goods & Services Tax (CGST), Delhi South Commissionerate, have arrested a partner of the firm engaged in trading of iron and steel goods in a case involving fraudulent availment, utilisation and passing on of inadmissible ITC aggregating to over Rs. 15.78 crore through bogus invoices of approximately Rs. 87.67 crore.
Investigation revealed that the firm had availed inadmissible ITC on the basis of invoices issued by multiple firms, several of which were found to be non-existent, non-functional, suspended or cancelled. Field verification also established that certain suppliers had no genuine business activity at their declared places of business.
Further inquiry established that ITC was availed without actual receipt of goods and was also passed on to various recipients through invoices issued without corresponding supply of goods.
Based on the evidence gathered during investigation and statements recorded under Section 70 of the CGST Act, 2017, the accused was arrested on 14.09.2026 under Section 69 of the CGST Act, 2017 and produced before the Patiala House Court, which remanded him to judicial custody for 14 days.
Further investigation in the case is under progress.