Delhi CA held by CGST officials for passing on fake ITCs

New Delhi, Jan 15 : In the ongoing campaign against fake and bogus invoices and the resultant availment of inadmissible ITC, officers of the Central Goods and Service Tax (CGST) Commissionerate, Delhi (East) have detected a case of issue of fake bills of about Rs 79.5 crore.
The syndicate was being operated by Nitin Jain, a CA, by floating three firms i.e M/s Anshika Metals, M/s N.J Trading Co. and M/s A.J Enterprises using the identity of his family members, with the intent of passing of inadmissible ITC, a finance ministry release on the issue said.
Nitin Jain, through these firms passed on fake ITC of Rs 14.30 crore. All the e-way bills generated to transport the goods were also found to be fictitious.
Jain, who was absconding since December 16, 2020 finally appeared before the investigating officers on January 13. In his statement he accepted that he floated three fictitious firms using the identity of his father Naresh Chand Jain and his wife Diksha Jain for the purpose of availing and passing of fake ITC, the release said.
Two other cases of fake billing were detected by the Delhi East Commissionerate earlier in which Sachin Mittal and Dinesh Jain were found involved in the issue of bogus invoices and had passed fake ITC of Rs 12 crore and Rs 13.98 crore respectively through their firms. The two had in their statements also revealed the name of Nitin Jain, and stated that he had arranged/provided them fake bills/invoices of different firms on a commission basis.
Nitin Jain by using fake entities on the identity of his family members has knowingly committed offences under Section 132(1)(b) and 132(1)(c) of the CGST Act, 2017 as amended vide Section-127 of the Finance Act 2020, which are cognisable and non-bailable offences as per the provisions of Section 132(5) and punishable under clause (i) of sub section (1) of Section 132 of the Act ibid.