Punjab - VAT refund scam unearthed

The mobile wing of the state excise and taxation department has unearthed a major VAT refund scam involving seven companies. Tejbir Singh Sidhu, Assistant Excise and Taxation Commissioner (AETC), said, “We raided the premises of Om Enterprises at Partap Chowk and found loads of bogus bills and fake VAT refund receipts. Bill books of seven companies were found from this office and the owner used to charge his own commission to issue fake bills to these companies without any sale of goods, on the basis of which, they were claiming VAT refunds.”

Preliminary investigations have revealed that Om Enterprises has issued bills to seven companies of Ludhiana and Mandi Gobindgarh worth crores. Sidhu said,”We will now check the books of all these companies as well.” Most of the companies are into iron and steel business. It will take a month to complete the entire investigations, he added.

“The owner himself told that he is issuing fake bills, but as of now we have not taken any action against the owner,” Sidhu said.

The wing also detected a whopping Rs one crore tax evasion from steel and hosiery groups in the month of October alone. Sidhu said,”Evasion of Rs 4 lakh was detected in case of Aggarwal steel rolling mill and evasion worth Rs 20 lakh By Jindal and company. The remaining amount of Rs 40 lakh was evaded by 37 different companies.” The penalty has been recovered from the evaders, he informed.

Source : Ludhiana Newsline - Ludhiana, India, dated 20/11/2008