Commercial Taxes Department officials have conducted search of residential premises of Directors of M/s. A.S. Met Corporation (P) Ltd on 24-12-2023 and 26-12-2023 at Thrimulgherry, Secunderabad based on the information of huge GST evasion and got filed certain incriminating material. Previous and subsequent investigations carried out by the department indicated that Sri Piyush Pravinchandra Mehta, S/o Pravinchandra Mehta who is the Chief Executive Officer and the key person in conducting the fraudulent business transactions of M/s. A.S. Met Corp (P) Ltd. They are dealing in trading of MS Pipes, TMT Bars, TMT Rebars, CRFH Steel coils and MS Rounds of Iron and Steel.
During the course of investigation, it was noticed that M/s. A.S. Met Corp (P) Ltd, during the months of May’ 2018 to October’ 2022, issued Tax invoices for supplying of goods and generated e-waybills which records the movement of goods by utilizing the RFID tags attached to the Lorries/Trucks while crossing the toll gates established on Highways as well as Ring Roads, as if they are actually transporting the goods to their recipients/buyers. But subsequent investigations indicated that the vehicles on which M/s. A.S. Met Corp (P) Ltd., generated Tax invoices, e-waybills have not crossed any of the Toll plazas between the origin of goods movement and ultimate destination point. This clearly established that there was no movement of goods involved in those transactions. Further as per transport department data, it is noticed that the company has fooled the Government by entering registration numbers of Cars, Passenger Autos, Vans, Bikes etc., in ewaybills in place of goods transport vehicles lorries and trucks. This is an indication of proved bogus transactions by the company.
Further, M/s. A.S.Met Corp (P) Ltd., has utilized fake tax invoices and e-waybills to claim Input Tax credit (ITC) without actual receipt of goods. Prima-facie, it was noticed that they have evaded Rs. 5.89 Crores of GST by passing on ITC without actual supply of goods and availing ITC without actual receipt of goods.
Verification of incrimination material is under process and there are chances of increase in amount of tax evasion further. As the amount of tax evasion has crossed Rs. 5 Crores, it is a cognizable and non-bailable offence under the provisions of the GST Act.
Accordingly, an arrest warrant was issued to Sri Piyush Mehta, Director by Deputy Commissioner(ST) of Begumpet Division on 26-12-2023. But Sri Piyush Mehta was absconding since then. Commercial Taxes Department has sought the help of police to trace out Sri Piyush Mehta for his arrest. The police department has informed that he is under police radar and the accused would be handed over to the department any time.
Commissioner of Commercial Taxes is closely monitoring the case and informed that there are chances of arresting the accused soon.
