In the iPhone Smuggling case, the CGST Delhi has busted the fraud of Rs. 1285 Crore and Rs. 2.05 Crore Cash was recovered in the raid under the supervision of Manish Mohan Govil, Principal commissioner CGST Delhi North.
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Background – iPhone Smuggling
Vishal Pal Singh, Commissioner Customs IGI Airport received the information that M/s Arora Communication was indulging in trading iphones and consequently, on 24 October, 2024, a search was conducted on the premises, and Kapil Arora (proprietor) of M/s Arora Communication was unable to produce the documents pertaining to the stock/goods therefore, the goods were seized.
The department recorded the statements of the proprietor, Kapil Arora. The proprietor of the firm stated that Arora Communication was dealing in trading of Apple phones, which are of both Indian origin and foreign origin.
The proprietor disclosed that the travelling passengers provide him with this type foreign origin mobile phones.
The department on further investigation found that the ledgers from the laptop demonstrated the total sale from 2018-19 to 2024-25 was Rs. 12,84,54,31,007. However, as per GST portal the total turnover of M/s Arora Communication 1,00,92,469 and of M/s Cellphone Badlo Rs. 21,16,05,811.
On the enquiry by the department the Proprietor stated that the excess amount pertains to kachha sale (Cash sale) on which GST has not been paid.
The Proprietor admitted that he has shown a marginal amount of sale in the GST Returns and mostly he sold the goods in cash transactions.
It is noteworthy that the amount of GST evaded comes out approx. Rs. 200 Crore on the value of suppressed sales. The person is found indulged in sale and purchase of the goods without invoices and thereby resulting in evasion of tax which is more than Rs. 5 crores.
Application By The Dept. Before Patiala House Court
The Department filed the application seeking judicial remand of the accused Kapil Arora (proprietor) of M/s Arora Communication.
Harpreet Singh, the Counsel on behalf of the CGST department contended that investigations is at a very nascent stage and there is every likelihood that accused may interfere with the investigations, temper the evidence and influence the witnesses during further course of investigation by the department into the huge evasion of tax undertaken by him.
The counsel on behalf of the CGST department stated that the accused has neither been able to provide the source of goods from where he purchased the goods nor he able to give satisfactory answer to provide name of firms/persons to whom he sold goods.
The accused proprietor was sent to judicial custody for 14 days by the Patiala House Court to ensure proper investigation of the offence and he may influence the witnesses and tamper with the evidence as he is still involved in passing on the fraudulent ITC.
