Cuttack, February 14: The State GST Enforcement Squad, Cuttack comprising of 10 officers, on Monday raided the a fly ash manufacturing unit namely Maa Salara Fly Ash Bricks and the residence of its proprietor here and detected a GST fraud involving claiming of erroneous refund of Rs 4.38 crore.
“The said refund has been claimed under inverted duty structure. It is claimed that huge amounts of ITC have remained unutilized as the main raw material i.e. cement is taxable @28% whereas the finished product i.e. fly ash bricks is taxable @12%. But verification reveals that the taxpayer has shown fictitious purchases of cement from places like Keonjhar, Titrtol, Panikoili, Jagatsinghpur, Sukinda despite the fact that the manufacturing unit is located at Cuttack,” said an official release.
According to a communique issued by the Odisha State CT & GST Enforcement Wing, no proportionate quantities of bricks were also found to be manufactured in proportion to the consumption of cement, it said.
During the investigation, large numbers of incriminating documents, bill books of 6 different firms were detected and seized for further investigation. It is suspected that the mastermind has arranged fake purchase invoices without receipt of cement and utilized the ITC to discharge tax & claimed refund of balance ITC. He has not utilized any e-waybill for purchase of the goods, it added.
The investigation is in progress, it added.
