The Directorate General of Intelligence of GST (DGGI), Thiruvananthapuram Regional Unit has revealed an alleged cartel of steel industry units engaged in GST evasion and arrested one person in this regard.
The arrest has been identified as Humayoon Kalliayth, owner of Palakkad-based Humayoon & Associates, which allegedly led the cartel, according to a statement released by DGGI on Wednesday.
Mr. Kalliyath is also the executive director of Kairali Steels and Alloy (P) Ltd., Palakkad, which is believed to be the main beneficiary of the racketeering.
The cartel allegedly used and transmitted fake input tax credits to facilitate GST evasion. The arrested was accused of having floated fictitious units in his name and that of his accomplices. The bogus input tax credit passed on in this manner by the cartel was used for GST evasion by the recipients.
Officers from DGGI units in Thiruvananthapuram, Kochi and Kozhikode conducted simultaneous operations at various premises across the state and recovered a number of incriminating documents.
“Preliminary investigation reveals that the cartel issued fake invoices worth ₹400 crore to the ultimate beneficiaries, thereby passing fake GST entry credit in the amount of approximately ₹43 crore,” says the communicated.
The arrest was reserved under Article 132 of the CGST Law and the charges are not bailable. He was brought before the Additional Chief Judicial Magistrate, Thiruvananthapuram, and remanded in custody.
Jijo Francis, Intelligence Officer, DGGI Thiruvananthapuram Unit, made the arrest. The team also included senior intelligence officers Hareendran K., Shahul Hameed A., Balagopal G., and Kurian P. Mathew; intelligence officers Vaishak R., Vaishakhan, Ashok Kumar Datti and Manju Krishnadas.
The investigation was supervised by Krishnenthu Mintoo Raja, Deputy Director, DGGI, Thiruvananthapuram Unit, under the supervision of Nasser Khan, Additional Director.