HomeGSTGST Fraud of Rs. 23.48 Crore Unearthed by CGST Gautam Buddha Nagar;...

GST Fraud of Rs. 23.48 Crore Unearthed by CGST Gautam Buddha Nagar; Scrap Trader Arrested

Published on

🚀 Stay Connected With JurisHour

WhatsApp X Telegram

In a major crackdown on tax evasion, the Central Goods and Services Tax (CGST) Commissionerate, Gautam Buddha Nagar, headed by Commissioner of Central Tax Sanjiv Kumar Mishra has exposed a fraudulent Input Tax Credit (ITC) scam amounting to Rs. 23.48 crore involving M/s New Global Scrap Traders.

Based on intelligence inputs, the department conducted searches at the declared principal places of business of the major suppliers of the said firm. These suppliers were found to be non-existent. The investigation revealed that M/s New Global Scrap Traders had been availing and passing on fraudulent ITC without any actual supply of goods.

During the investigation, the proprietor of the firm, Shri Azaharuddin, voluntarily gave statements admitting to the fraud. He disclosed that only invoices were being procured and issued—without the actual movement or receipt of goods. The invoices were generated solely to claim and pass on illegitimate ITC.

The CGST authorities stated that this modus operandi involved acquiring invoices from fake entities, using them to claim ITC, and then passing on this ineligible ITC to other parties—thereby defrauding the government exchequer.

Azaharuddin has been found guilty of offences under Sections 132(1)(b), 132(1)(c), and made liable for punishment under Section 132(1)(i) of the Central Goods and Services Tax Act, 2017. He was arrested on June 13, 2025, under Section 69 of the CGST Act and has been sent to judicial custody for 14 days by the Hon’ble Court of Special CJM, Meerut.

Read More: Engineering, Design Services Exported To Foreign Group/Sister Company Qualifies As “Export Of Services”: Bombay HC Allows ITC

Mariya Paliwala
Mariya Paliwalahttps://www.jurishour.in/
Mariya is the Senior Editor at Juris Hour. She has 7+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started her career as a freelance tax reporter in the leading online legal news companies.

Latest articles

Compensation for Delayed Possession Of Flats To Homebuyers Can’t Be Limited by One-Sided Builder Clauses: Supreme Court

The Supreme Court has upheld the authority of consumer forums to award fair compensation...

Extended Limitation Not Invocable Without Suppression: CESTAT Quashes Service Tax Demand on Online Advertisement

The Allahabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has...

Service Tax Demand Based Solely on Form 26AS Unsustainable When Underlying Services Are Exempt: CESTAT

The Allahabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has...

SEBI Suspends General Manager in Vigilance Case Linked to SME IPO Probe

In a significant internal development, the Securities and Exchange Board of India (SEBI) has...

More like this

Compensation for Delayed Possession Of Flats To Homebuyers Can’t Be Limited by One-Sided Builder Clauses: Supreme Court

The Supreme Court has upheld the authority of consumer forums to award fair compensation...

Extended Limitation Not Invocable Without Suppression: CESTAT Quashes Service Tax Demand on Online Advertisement

The Allahabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has...

Service Tax Demand Based Solely on Form 26AS Unsustainable When Underlying Services Are Exempt: CESTAT

The Allahabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has...