It is the first case of an arrest in Delhi, under the new tax regime that came into force on 1st July 2017.
Searches were conducted at several places during which various incriminating documents and evidence were found. The investigation that followed revealed the involvement of the father and son. Both were arrested under Section 69 (1) of CGST Act and CMM, Patiala House remanded them to judicial custody for 14 days.
As per Section 132 of the CGST Act, issuance of an invoice or bill without a supply of goods and wrongful availment or utilization of input tax credit is a cognizable and non-bailable offense if the amount involved is over Rs.5 Crores.
Further investigations are underway and the quantum of evasion is likely to go up. Officers are not ruling out the possibility of the existence of several other fake firms as the investigation moves ahead.