Steel company’s director arrested for 51.5cr GST evasion
Ahmedabad: The officials of CGST Commissionerate, Gandhinagar, have apprehended Dhaval Patel, one of the directors of Nandeshwari Steel Limited, in a major GST evasion case. The investigators estimate the amount of tax evaded was Rs 51.53 crore. The integrated steel plant, which boasts a turnover exceeding Rs 700 crore, has come under scrutiny for allegedly availing fraudulent input tax credit (ITC) to offset its GST liabilities.
Following his arrest, Patel underwent a medical examination and was presented before the additional chief metropolitan magistrate in Ahmedabad.
He was remanded to judicial custody for 14 days, effective July 21. Investigations revealed that Nandeshwari Steel Limited was using bogus bills from fictitious or non-existent suppliers, and from suppliers whose GST registrations had been revoked. The fake invoices were later used solely to pass on the ITC without the actual supply of goods.
“Further probe revealed that Nandeshwari Steel Limited had procured substantial quantities of raw materials, specifically stainless steel scrap, from unregistered local suppliers and scrap dealers without bills or having paid GST. To falsely claim ITC on these purchases, the company obtained bogus ITC invoices from non-existent entities,” SGST officials said. Patel was detained under Section 69 of the CGST Act, 2017.
