Rs 1.34-cr tax refund scam unearthed in Fatehabad

Sushil Manav

Tribune News Service

Chandigarh, September 17

Yet another bogus tax refund scam by sham transactions through non-existence firms has come to light in the state.

This time, New India Enterprises, Ward-1, Fatehabad, registered in the name of Hawa Singh, is alleged to have defrauded the state government of Rs 1.34 crore by issuing as many as 253 invoices worth Rs 12.98 crore to 19 other firms without purchasing or selling any goods and claiming tax refunds against these invoices.

During inquiries by the Excise and Taxation Department in the district, all 20 firms have been found non-existent. Neither is Hawa Singh traceable nor are the firms functioning at the addresses on which these are registered.

Interestingly, all these firms have given one particular mobile number as their contact number, which show some other name as its owner in the True Caller application.

VK Shastri, Deputy Excise and Taxation Commissioner, Fatehabad, has written a detailed six-page detailed letter to the Excise and Taxation Commissioner, Haryana, giving details of bogus transactions in which a variety of items like cement, old scrap, mild steel scrap, veneer core, cotton, desi ghee, mustard cake, plywood, butter and waste paper have been shown to have been purchased and sold by firms that do not actually exist on the ground.

Shastri has sought permission for registration of police case against the firms. On the basis of these bogus transactions, the firm New India Enterprises, Fatehabad, is alleged to have claimed input tax credits (tax refunds) of Rs 81.41 lakh in March, Rs 28.94 crore in April and Rs 23.65 crore in May.

The inquiries conducted by the department suggest that the said firm has claimed fraudulent input tax credits by showing transactions at a number of stages from dealers without conducting any business activities at the business premises mentioned in the registration certificate or ever purchasing or selling any goods.