Searches were conducted at several places during which various incriminating documents and evidence were found. Investigation that followed revealed involvement of the father and son. Both were arrested under Section 69 (1) of CGST Act and CMM, Patiala House remanded them to judicial custody for 14 days.
As per Section 132 of the CGST Act, issuance of an invoice or bill without supply of goods and wrongful availment or utilisation of input tax credit is a cognizable and non-bailable offence if the amount involved is over Rs 5 Crores.
“Further investigations are underway and the quantum of evasion is likely to go up. Officers are not ruling out the possibility existence of several other fake firms as the investigation moves ahead,” said the FinMin press communique.