The Surat zonal unit of the Directorate General of Goods and Services Tax Intelligence (DGGI) has arrested Sajjad Salim Ali Bhimani, the director of Mahimna Alloys Pvt Ltd, for alleged tax fraud. Bhimani was taken into custody and produced before a court, which ordered him to be sent to 14 days’ judicial custody. The accused is alleged to have availed himself of input tax credit (ITC) of around Rs 30 crore, despite being ineligible, by using bogus firms based in Maharashtra, Gujarat, and Delhi.
According to the DGGI, Bhimani forged bills and papers claiming to trade in mild steel scrap to obtain the ITC. He submitted bills from eight companies, six of which were based in Maharashtra, one in Gujarat, and one in Delhi. However, investigations revealed that all of these companies were bogus and did not supply or receive any goods. The fraudulent transactions involved a taxable value of nearly Rs 200 crore and took place over the last one and a half years.
The DGGI has stated that investigations are ongoing to identify other entities and individuals linked to the network of fake firms. The authorities are working to uncover the extent of the tax fraud and to bring all those involved to justice. The arrest of Bhimani is a significant step in this process, and the DGGI is committed to combating tax evasion and ensuring compliance with goods and services tax (GST) laws.
The use of bogus firms and forged bills to claim ITC is a serious offense, and the DGGI is taking strong action against those involved. The agency is using its powers to investigate and prosecute cases of tax fraud, and to recover the taxes owed to the government. The case against Bhimani is a example of the DGGI’s efforts to crack down on tax evasion and to protect the integrity of the GST system.