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.
