Published Jan 02, 2024 | 7:25 PM ⚊ Updated Jan 02, 2024 | 7:25 PM
Two GST tribunals to be set up in Kerala. (iStock)
The Commercial Taxes Department is hoping to arrest Piyush Pravinchandra Mehta, CEO of AS Met Corporation Limited, soon for alleged GST evasion.
Commissioner of Commercial Taxes Dr TK Sreedevi said on Tuesday, 2 January, that an arrest warrant was issued against Mehta on 26 December by the Deputy Commissioner (ST) of Begumpet Division.
Since then, Mehta has been on the run, prompting the Commercial Taxes Department to enlist the assistance of law enforcement in locating him. The police, too, have been on the lookout for Mehta and he would be apprehended soon, the commissioner, who is closely monitoring the case, said.
The Commercial Taxes Department officials carried out a thorough search of the residential premises of AS Met Corporation (P) Ltd directors on 24 and 26 December 2023 in Tirumalagiri, Secunderabad. The investigation stemmed from information suggesting significant GST evasion.
Subsequent investigations revealed that Mehta, the central figure in the alleged fraudulent transactions at AS Met Corp (P) Ltd, orchestrated illicit dealings involving the trading of MS pipes, TMT bars, TMT rebars, CRFH steel coils, and MS rounds of iron and steel.
During the inquiry, it was discovered that between May 2018 and October 2022, AS Met Corp (P) Ltd issued tax invoices and generated e-waybills, purportedly documenting the transportation of goods by utilising the RFID tags attached to the lorries, while crossing toll gates on highways as well as Ring Roads, as if they are transporting the goods to the buyers.
However, further scrutiny disclosed that the vehicles associated with these transactions did not pass through any toll plazas between the point of origin and the final destination.
As per transport department data, it appeared that the company had deceived the government by inputting registration numbers of non-commercial vehicles, such as cars, passenger autos, vans, and bikes, instead of actual goods transport vehicles, in the e-waybills. This manipulation indicated the involvement of AS Met Corp (P) Ltd in sham transactions.
Additionally, the company exploited fake tax invoices and e-waybills to fraudulently claim Input Tax Credit (ITC) without any genuine receipt of goods.
Preliminary findings suggested an evasion of ₹5.89 crore in GST, involving passing on ITC without actual supply of goods and availing ITC without legitimate receipt of goods.
