Two Top Executives Of Jajpur Firm In Odisha Arrested For Rs 23 Cr GST Fraud

Bhubaneswar: Two top executives of a company have been arrested for alleged Rs 23 crore GST fraud.

The firm in question is Maithan Ispat Ltd, Kalinga Nagar-Jajpur, a manufacturing unit of articles of iron and steel, and those arrested have been identified as General Manager (Finance) Manas Ranjan Pahi and Assistant General Manager (Taxation) Surendra Kumar Patra.

According to a release by Directorate General of GST Intelligence, Bhubaneswar Zonal Unit, the firm had availed fictitious Input Tax Credit (ITC) between April 2018 and November 2018 without relevant documents like invoices.

The search on the factory and office premises of the company revealed that the unit had taken ineligible ITC of Rs 23 crore in GSTR-3B returns for the month of April 2018 to November, 2018, and utilised the same for payment of GST liability, thereby causing a loss of Rs 23 crore to the government exchequer.

Further investigation found complicity of Pahi and Patra in the manipulation of these returns.

While Patra was arrested in Bhubaneswar and Padhi was apprehended in Kolkata on January 2. The duo was produced before court, which remanded them to 14-day jail custody

All efforts are being made to recover the government dues along with interest and penalty, the release added.