Two Maithan Ispat employees arrested for 'GST fraud' in Odisha
BHUBANESWAR: Two senior executives of, a subsidiary of MESCO Steel, have landed behind bars for allegedly using the tax credit for input (ITC) of Rs 23 crore without having supporting documents, including the tax bill. Goods and services tax (GST) officials said Monday they arrested Maithan Ispat's assistant general manager (taxes) and general manager (finances) Manas Ranjan Padhi on Thursday for allegedly planning the fraud.
The General Directorate of Intelligence GST (DGGI) recently received information about the alleged tax fraud and began investigating against Limited, located in Kalinga Nagar in the district of Jajpur. “We discovered that Maithan Ispat Limited made use of the fictitious entry tax credit between April 2018 and November 2018 without due support of the relevant documents, such as invoices. They took ITC inflated in their GST statement without receiving any good or service. They did not have the necessary documents to claim the ITC, said additional DGGI director in Bhubaneswar, Santosh Kumar Mohanty.
Recently, GST officials raided the facilities of the factory and the Maithan office in Jajpur and found evidence of the alleged tax offense. Officials detected that the company illegally requested Rs 23 crore ITC while filing the GST statement from April 2018 to November 2018 and fraudulently claimed the money as their GST responsibility. GST authorities said the alleged mischief of the company allegedly caused a loss of Rs 23 million rupees to the government of the government.
Our additional investigation revealed the participation of Surendra Patra and Manas Padhi, the two employees of Maithan Ispat Ltd, behind the manipulation. Efforts are being made to recover government fees along with interest and grief, Mohanty said. GST officers arrested Patra in Bhubaneswar and presented him in the court of the subdivision judicial magistrate. Padhi was arrested in Kolkata and produced in the court of ACJM, Sealdah in Kolkata. Both defendants were jailed for 14 days. Isit authorities were not available. for comments