Two Maithan Ispat employees arrested for ‘GST fraud’ in Odisha

BHUBANESWAR: Two top executives of Maithan Ispat Limited, a subsidiary of MESCO Steel, have landed behind the bars for allegedly availing Rs 23 crore input tax credit (ITC) without possessing supporting documents, including tax invoice. Goods and service tax (GST) officials on Monday said they arrested Maithan Ispat’s assistant general manager (taxation) Surendra Patra and general manager (finance) Manas Ranjan Padhi on Thursday for allegedly masterminding the fraud.

Directorate general of GST intelligence (DGGI) recently received information about the alleged tax fraud and started investigating against Maithan Ispat Limited, located at Kalinga Nagar in Jajpur district. “We found that the Maithan Ispat Limited availed fictitious input tax credit between April 2018 and November 2018 without due support of relevant documents, like invoices. They took inflated ITC in their GST return without receipt of any goods and services. They had no requisite documents to claim the ITC,” DGGI’s additional director in Bhubaneswar, Santosh Kumar Mohanty said.

Recently, the GST officials raided Maithan’s factory and office premises at Jajpur and found evidence of the alleged tax offence. The officials detected that the company illegally applied for Rs 23 crore ITC while filing GST return from April 2018 to November 2018 and fraudulently claimed the money as their GST liability. GST authorities said the alleged mischief of the company allegedly caused a loss of Rs 23 crore to the government exchequer.

“Our further investigation revealed the involvement of Surendra Patra and Manas Padhi, the two employees of Maithan Ispat Ltd, behind the manipulation. Efforts are being made to recover the government dues along with the interest and penalty,” Mohanty said. The GST officers arrested Patra in Bhubaneswar and produced him in the court of sub-divisional judicial magistrate. Padhi was arrested in Kolkata and produced in the court of ACJM, Sealdah in Kolkata. Both the accused were remanded to 14-day judicial custody. Maithan Ispat authorities were unavailable for comment.

Source- Times of India.

The post Two Maithan Ispat employees arrested for ‘GST fraud’ in Odisha appeared first on GST Station.



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