IN THE HON’BLE COURT OF LD. SPL. CJM (E.O.

), MEERUT

C.C.No.___________/2021-22

IN THE MATTER OF:

Directorate General of Goods & Services Tax Intelligence,

Zonal Unit, Meerut.

Through

Shri Ajit Kumar Tiwari

Senior Intelligence Officer

Meerut Zonal Unit ……..…….….…

Complainant

Versus

1. Shri Ashish Rajput

R/o Village & Post Office- Gajraula Shiv,

Police Station -Bijnore Kotwali,

Distt. Bijnore ..……...………Accused

No.1

and

2. Shri Mayank Gautam alias Rishi

R/o 13, Patel Nagar,

Post and Police Station Nayi Mandi,

Muzaffarnagar U.P. ..……...………Accused

No.2
 COMPLAINT FOR THE OFFENCES COMMITTED UNDER SECTION 132(1)

(b) OF THE CGST ACT, 2017 AND PUNISHABLE UNDER CLAUSE (i) OF

SECTION 132 (1) OF THE CGST ACT, 2017.

1. That the Complainant is working as Senior Intelligence Officer at

DGGI, Regional Unit, Dehradun, which functions under the DGGI,

Meerut Zonal Unit. Meerut. That the complainant is a Public

Servant within the meaning of Section 21 of the India Penal Code,

1860 and this report is filed in such capacity.

2. That the complainant submits that Shri Pradyumn Tripathi,

Additional Director General, DGGI, Meerut Zonal Unit, in exercise of

powers conferred upon him under Section 132(6) of the CGST Act,

2017 has accorded sanction for prosecution of the two accused viz.

Shri Ashish Rajput, Resident of Village and Post Office Gajraula

Shiv, Police Station Bijnore Kotwali, Distt. Bijnour and Shri Mayank

Gautam alias Rishi, Resident of 13, Patel Nagar, Post and Police

Station Nayi Mandi, Muzaffarnagar, U.P. The Sanction Order

No.___________issued

vide_________________________________________________dt.__________a

nd authorization to file charge-sheet issued

vide__________________________ dt.__________, in original, are

enclosed as Annexure-A(i) and Annexure-A(ii).

3. The facts leading to filing of the present complaint are as follows:

4. Intelligence was gathered that some of the bogus firms are registered in

Uttarakhand and Uttar Pradesh and invoices have been issued from such

firms with intent to pass on fake ITC without supply of concomitant goods.

On verification of some of the firms situated in the vicinity of Dehradun,

these firms were found non-existent/non operative at their registered

premises. Hence, summons were issued to two persons viz. Shri Anoop Bisht

and Shri Vishal Khare whose telephone numbers were mentioned in the

registration details of some the such non-existent firms. On the basis of facts

deposed by both of them, it was revealed that such firms were created and

managed by Shri Ashish Rajput, Resident of Village and Post Office Gajraula

Shiv, Police Station Bijnore Kotwali, Distt. Bijnour and Shri Mayank Gautam

alias Rishi, Resident of 13, Patel Nagar, Post and Police Station Nayi Mandi,

Muzaffarnagar, U.P. Further it was also gathered that they have taken one

residential premises on rent in Dehradun from where they carry out their

activities in relation to transactions made under the name of such firms in

Uttarakhand. Hence, Summons were issued under section 70 of the CGST

Act, 2017 to Shri Ashish Rajput and Shri Mayak Gautam on 29.09.2021 for

recording their statements on the same day. Statements of both these

persons were recorded on 29.09.2021 (Annexure-1).

5. A search was also conducted at the residential premises of Shri Vishal Khare,

an employee of Shri Ashish Rajput, on 30.09.2021. Shri Vishal Khare and

Shri Salman Khan were found present at the residence. During the search,

some incriminating documents and some mobile phones were recovered from

the said residential premises. Panchnama dated 30.09.2021 (Annexure-2)

was drawn for the proceedings conducted at the residential premises.

 Statements of Shri Vishal Khare (Annexure-3) and Shri Salman Khan

(Annexure-4), were recorded on 30.09.2021 under Section 70 of the CGST

Act, 2017.

6. Statements of Shri Ashish Rajput (Annexure-5) and Shri Mayank Gautam

alias Rishi (Annexure-6) were recorded on 30.09.2021 and 01.10.2021, also,

under Section 70 of the CGST Act, 2017.

7. Shri Ashish Rajput, in his statements tendered on 29-09-2021, 30-09-2021

and 01-10-2021 revealed the following:-

a) That he was resident of Gajraula Shiv, District-Bijnore, U.P.

b) That he had done MBA
c) That he did not have any firm registered in his name.
d) That he was engaged in iron scrap trading since 2018.
e) That he had supplied iron scrap to M/s Abhi Alloys and M/s
Mahadev Industries of Mandi Gobindgarh. He had procured iron
scrap only from two scrap dealers of Dehradun.
f) That he came to Dehradun in September 2021 for some personal
work and stayed near IT Park, Dehradun.
g) That he had two mobile connection numbers viz. 7535926959 and
9027319050 which were for both personal as well as business
purpose and used these numbers for preparing invoices for drivers
transporting goods through trucks.
h) That he ascertained the price of scrap on a given day on mobile
app, then he used to forward the address and GSTIN of the buyer
to the scrap dealer and the later would send the scrap to the buyer
directly. The buyer would remit the payment to scrap dealer
directly into his account through RTGS and he would get his
commission of Rs.3000.00 to Rs.4000.00 per truck through IMPS
or Google Pay.
i) That he knew Shri Vishal Khare and Shri Salman Khan who
worked for him. Shri Vishal Khare was his employee whom he
paid Rs.10,000.00 per month. Shri Vishal Khare used to look after
the work related to banks while Shri Salman Khan arranged for
iron scrap and its transportation.
j) Regarding whatsapp chats mentioned in question 6 of his
statement dt.30.09.2021, he admitted that these chats belonged to
trading of invoices without actual supply of goods, arrangement
for trading and transportation of goods and other related activities.
k) That he admitted to have created various bogus firms to receive
and pass on fake ITC. He closely monitored activities of all the
firms created by him, in association with Shri Mayank Gautam
alias Rishi.
l) That he admitted that from the bogus and fake firms he had been
issuing invoices for passing on fake ITC to their buyers. They
procured materials on cash basis from Kabadi and took fake
invoices from other bogus firms so that ITC would reflect in GSTR-
2A of bogus firms created by him. He neither procured any goods
from the suppliers against the invoices issued by them to him nor
do bogus firms created by him would supply any material against
the invoices issued by him to his buyers. He simply provided fake
invoices to the buyers issued by his bogus firms to facilitate
passing of ineligible ITC to them. The material (iron/MS scrap) was
directly sent to the recipient of goods by the Kabadi under the
cover of invoices issued by bogus/ fictitious firms created by him.
In this process, firstly he would get goods on cash payment from
Kabadi and he would also take fake invoices from other bogus
firms so that ITC will reflect in GSTR-2A of his bogus firms.
m) That the goods arranged from kabadis was directly sent to
buyers/ factory with the invoices issued by their bogus firms
mostly located at the same place where the kabaddi was located.
The payments from buyers against the supplies made by their
bogus firms was received in the current account of the bank
pertaining to the concerned firm though RTGS.
 n) That bogus firms created by him with association of others are
as under:-

S.No  GSTIN Name of Firm Name of Prop.

1 09BKAPK5154Q1ZN Shri Ram Enterprises Vishal Khare
2 09BKAPK5154Q1ZN Vishnu Trading Co. Mahendra Kumar
3 05GYRPK5522E1ZA Indian Trading Co. Firoz Khan
4 05GVUPK7640M1ZP Bharat Enterprises Salman Khan
5 02AWXPL1482A1ZO Lodha Enterprises Paras Lodha
6 09FOWPD2471D1ZB Shiva Industries Chan Dutta
7 09FCVPS9528B1ZS Shree Hanuman Ram Singh
Enterprises
8 05JOBPS5288N1Z1 VS Trading Co. Virender Sharma
9 05LSOPS5184C1Z6 Mahalaxmi Traders Soniya
10 05EMMPD4337R1ZI U.K TRDERS DEVENDRA
11 05BYFPC450211ZZ MAHADEV ENTERPRISES PREAM CHAND
12 05EDJPD4565D1ZR A.R TRADES BEENA DEVI
13 05HFJPS3239R1ZK SHIVAM TRADERS DHARAMPAL SINGH
14 09MOPPS8537B1Z3 SHARMA INDUSTRIES DINESH SHARMA
15 02BIIPR2951L1Z1 Gurunanak Enterprises Varsha Rani
16 09DBUPK6481B1Z7 Rudra Industries Ashish Kumar
17 09HHFPK5909F1Z3 VK TRADERS Vishal Kumar
18 09BJIPA0045B1ZY Tejas Industries Amit
19 05BVRPT0935Q1ZO Maa Bhagwati Tanuja
Enterprises
20 09AUZPK0803A1ZQ Shri Jee Industries Manish Kumar
21 02ANAPC9640B1ZS Rohit Trading Co. Chandarkala
22 09CKVPG2761B1ZX Jagannath Industries Gaurav
23 05AVYPL0287B1ZG Shri Hanuman Leela Ram
Enterprises
24 05AQCPL4319D1ZB Lodha Enterprises Ankush Prasad Lodha

o) That fake /bogus firms were created in the name of third persons
on the basis of Ids and other documents of that person. In order to
create fake /bogus firms first they identify the persons (such as
Vishal Khare) who could provide them documents such as PAN
card, Aadhar Card, Voter Card and other address proof docu-
ments of other persons. That he used to pay Shri Vishal Khare an
amount of Rs. 10,000/- as salary per month. He further used to
give him Rs.15000/- per month for payment to the person whose
documents were used for creating bogus firms for him for is-
suance of fake bills/invoices. Once the firm was created the same
 was got registered under GST by him. Also bank accounts were
opened in any bank in the name of the bogus firm.

p) That the invoices of the bogus firms created by him were sent to M/s
Mahadev Industries, M/s Madhav Industries, M/s Abhi Alloys, M/s
Ashi Steel, all traders located at Govind Garh, Punjab

q) That Mohd. Akram Dakrani had taken user ID & Password and Bank
account of bogus firms created by Ashish Rajput & Mayank Gautam
@ Rishi, for running the illegal business. The details of the such bogus
firms are as under:

S.No.  GSTIN Name of Firm Name of Prop.

1 02AWXPL1482A1ZO Lodha Enterprises Paras Lodha
2 05JOBPS5288N1Z1 VS Trading Co. Virender Sharma
3 05LSOPS5184C1Z6 Mahalaxmi Traders Soniya
4 05BYFPC450211ZZ MAHADEV ENTERPRISES PREAM CHAND
5 05EDJPD4565D1ZR A.R TRADES BEENA DEVI
6 05HFJPS3239R1ZK SHIVAM TRADERS DHARAMPAL SINGH
7 02BIIPR2951L1Z1 Gurunanak Enterprises Varsha Rani
8 05BVRPT0935Q1ZO Maa Bhagwati Tanuja
Enterprises
9 05AQCPL4319D1ZB Lodha Enterprises Ankush Prasad
Lodha

r) That he revealed that Mohd. Akram Dakrani had passed on most of

the fake ITC on the strength of invoices issued by the above stated
bogus firms to M/s Tehri Iron and Steel Industries, Roorkee and in
return, he used to give him 25% of ITC in CASH.
s) That their clients were well aware of the fact that the bills/invoices
were being received from bogus firms and raw materials are being
received from other persons without bills/invoices.
t) That the scrap dealers did not pay any GST/Tax on the goods they
sell to different buyers. That he, with the help of his associates, had
arranged trucks to carry these goods to the destination. The tax
invoices, issued by the bogus firms created by them, accompanying
these goods were also provided by him.
 u) That they even help in creating e-way bills and arrangement of truck,
weighment slips on payment of Rs.100 each slip without actual
weighment of goods. The most important thing is that the ultimate
buyers who procure iron scrap under the cost of the aforesaid
invoices were fully aware of the facts that no Tax has been paid on
the said goods.
v) That they used to keep quantum of transaction of each bogus firm
upto Rs.2 cr. in order to skip detection from the enforcement agencies.
As soon as the quantum reached Rs.2 cr. they would dissolve/
discard the said firm and create new one for conducting similar
trading.
w) That he admitted that the input tax credit of the aforesaid 24
firms amounted to Rs.12,62,76,365/- which had been passed
on by the said bogus firms created by them. That they did not
retain entire ITC to themselves but they got only certain
percentage of the said ITC and it might be 20% of total ITC.
x) That he saw printout of Whatsapp chats recovered from the phone of
Shri Vishal Khare which were between him and Shri Vishal Khare.
He explained about each printout of the said chats and did not dis-
own it. Thus, he admitted the contents of the said chats.

8. Shri Mayank Gautam alias Rishi, in his statements given on 29-09-2021, 30-

09-2021 and 01-10-2021 revealed the following:-

a) That he had taken education upto class 12th and he was a

resident of 13, Patel Nagar, Nai Mandi, Muzaffarnagar Uttar
Pradesh and engaged in trading of iron scrap as commission
agent.
b) That he traded in goods without bills/ invoices and took
payment in cash.
c) That he had no registered or unregistered firm in his name.
d) That he used to sell approximately 20 tonnes of iron scrap per
month at the rate of Rs.32,000.00 per tonne.
e) That he knew Shri Ashish Rajput and helped each other in
supply of iron scrap to manufacturing units/ factories.
f) That he had a firm M/s Ansh Enterprises while Shri Ashish
Rajput had a firm named M/s Sidhbali Enterprises.
g) That he knew Shri Vishal Khare and Shri Salman Khan. Salman
Khan lived in Bijnore while Shri Khare lived in Dehradun. Both
these persons worked for him to run bogus firms. Shri Vishal
Khare arranged Adhaar Card, PAN cards of different persons
and helped in arranging rent agreements and bank accounts of
these persons for getting GST registration through some
consultant. At his instructions and that of Ashish Rajput’s, Shri
Khare used to look after the banking transactions of the bogus
firms. They used to give a salary of Rs.10,000.00 per month to
Shri Vishal Khare and Rs.15,000.00 per firm to those persons
whose documents were used by them to create bogus/ fictitious
firms. Shri Salman Khan used to arrange iron scrap for them
without bills/ invoices. They (Ashish and Mayank) gave Salman
a payment of Rs.200.00 per tonne of iron scrap supplied by him
and also some amount per month.
h) That he knew Shri Ashish Rajput who was engaged in trading
of invoices of bogus firms created by them. He along with
Ashish Rajput managed and operated the affairs of the bogus
firms created by them. They have engaged Shri Nitin Aneja on
payment of Rs.15,000.00 per month for making invoices for
such bogus firms. Similarly they have engaged Shri Aditya
Gupta for making invoices for bogus firms created at Bahraich.
i) That he along with Ashish Rajput managed and operated the
activities of such bogus firms since 2018. After receiving the
order for scrap from the factories, they procured scrap from the
kabadis and sent it to the factories under the cover of invoices
issued from the bogus firms. In many cases small consignments
were sent through small vehicles (tempos) where e-way bill were
not required and later on invoices were issued for such goods
from the said bogus firms.
j) That he admitted to have sent messages to Shri Ashish Rajput
on WhatsApp platform related to business carried out from the
bogus firms created by them. In answer to question no.7 of his
 statement dt.30-09-2021, he admitted to have equal share in
business with Shri Ashish Rajput. He also admitted to have
issued fake invoices from bogus firms for getting monetary
benefits and was fully aware that it was illegal.
k) That he admitted to have sent list of vehicle numbers of the
existing commercial vehicles to Shri Ashish Rajput from time to
time for making e-way bill etc.
l) That he admitted to have arranged fake weighment slips to
accompany fake invoices for a price of Rs.200.00 per weighment
slip.
m) That he admitted to have received payment of commission from
the bogus firms supplying the invoices related to inward
supplies
n) That admitted to have shared user name and password details
of bogus firms created by Shri Ashish Rajput for issuing fake
GST bills/ invoices.
o) That admitted to have sent coded messages by using pictures
currency notes to send or receive cash payments.
p) That he admitted that 24 bogus firms were created to issue
invoices without supply of goods. He admitted to have passed
on fake input tax credit amounting to Rs.12.62 cr. through these
bogus firms.
q) That he admitted to have managed the affairs of these bogus
firms in association with Shri Ashish Rajput. He was
instrumental in arranging documents for creating bogus firms as
well as arranging goods from local kabadis for sending it nearby
factories and also arranging bogus weighment slips related to
goods mentioned in the fake invoices issued from said bogus
firms.
r) That he admitted that Shri Ashish Rajput was instrumental in
creating bogus firms, filing its GST returns, issuing fake invoices
and fake e-way bills, preparing reply to the notices received
from GST department etc.
s) That he admitted to have created bank accounts of fake firms
and received payment through such banks via RTGS etc.
9. Shri Vishal Khare, in his statements given on 30-09-2021, revealed the
following:-
a) That he was knew Shri Mayank Gautam for long time. Shri
Mayank Gautam created one firm M/s Shree Ram Enterprises
at Muzaffarnagar based on his (Vishal Khare’s) PAN and
Aadhaar Cards and used to give him Rs.10,000.00 per month
for providing his documents to create the said firm. Shri Mayank
Gautam told him that he along with his partner Shri Ashish
Gautam were going to start business at Dehradun and asked
him to join it to get additional amount of Rs.10,000.00 per
month, so he accepted their offer.
b) That he was assigned the work of collecting Aadhaar Card, PAN
Card, Rent Agreement and Bank Account details etc. for Shri
Ashish Rajput and Shri Mayank Gautam alias Rishi. He also
looked after all bank related work for them.
c) That he admitted that debit cards recovered from his residence
on 30-09-2021 belonged to banks related to seven bogus firms.
These accounts were opened by him on the instructions given by
Shri Ashish Rajput.
d) That cheque books recovered from his residence on 30-09-2021
also related to bogus firms which were used for RTGS
transitions as per the instructions given by Shri Ashish Rajput.
e) That in a WhatsApp chat with Shri Mayank Gautam some GST
registration certificates were sent by Shri Mayank Gautam for
opening of Bank Account of the persons whose documents were
used for creating those firms.
f) That Mayank Gautam alias Rishi used to reimburse all
expenses incurred by him for works related to all bogus firms
created by him or Ashish Rajput.
g) That in many WhatApp chats with Shri Ashish Rajput, he had
made payments to different persons through Banks as per the
direction of Shri Ashish Rajput.
 h) That following firms were bogus firms created by Shri Ashish
Rajput and Shri Mayank Gautam alias Rishi.

Uttarakhand:-
Sl.No. Name of the Firm Name of the proprietor
1 Mahadev Traders Sh. Prem Chandra Verma
2 Shree Hanuman Enterprises Sh. Leela Ram
3 V.S. Trading Sh. Veerendra Sharma
4 Mahalaxmi Traders Mrs. Sonia Thakur
5 Maa Bhagwati Enterprises Miss Tanuja Verma
6 Lodha Enterprises Sh. Ankush Lodha
7 A.R. Traders, Shimla Bypass Sh. Pankaj
8 A.R. Traders, Doiwala Mrs. Bina Devi
9 Shivam Traders Sh. Dharmpal
10 M.K Traders Sh. Mahindra Kumar
Thakur
11 Vishnu Traders Sh. Narendra Kumar
Thakur
12 U K Traders Sh. Devendra Kumar
13 Ansh Enterprises Mayank Gautam
14. Kumar Traders Amit Kumar
15. EST Enterprises Mr. Ishrana
16. Shiv Enterprises Mr. Mohit

Uttar Pradesh:
Sl. No. Name of the Firm Name of the proprietor

1 Hanuman Enterprises Sh. Ram Singh

2 Tejas Industries Sh. Amit Negi
3 V.K. Traders Sh. Vishal Kumar
4 Ashirwad Industries Sh. Charan Singh
5 Sai Industries Sh. Shubham Kumar
6 Shree Ram Enterprises Sh. Vishal Khare
7 Sharma Industries Sh. Dinesh Sharma
8 Shree Jee Industries Sh. Manish Kumar
9 Rudra Industries Sh. Ashish Kumar
10 Sidhbali Enterprises
11 Ashirwad Trading Co. Sh. Charan Singh
12 Jagannath Industries Sh. Gaurav Kumar

Himachal Pradesh:
Sl.No. Name of the Firm Name of Proprietor
1 Rohit Trading Co. Mrs. Chandrakala
2 Lodha Enterprises Paras Lodha
 3 Guru Nanak Enterprises Mrs. Varsha Rani
4 S.K. Traders Sh. Sachin Kumar

i) That most of the persons whose documents were used for

creating above bogus firms were his relatives or friends.
j) That rent agreements for principal place of business was
executed only for obtaining the GST certificate. Once certificate
was issued, the premises were vacated without the knowledge
of premise owners.

10. Shri Salman Khan, in his statements given on 30-09-2021,

revealed the following:-
a) That he was engaged in sale purchase of iron scrap from 2019
to 2021, on commission of Rs.200.00 per MT.
b) That he used to collect scrap from small kabadis and store at
rented godown before sending it to traders through
transporters on bill provided by Shri Ashish Rajput. He knew
Shri Ashish Rajput as Tinku Bhai also.
c) That he used to make payment to small kabadis at the
direction of Shri Ashish Rajput.

11. Earlier, during physical verification conducted against several firms

created by Shri Ashish Rajput and Shri Mayank Gautam alias
Rishi, they were found to be either non-existent at their given
addresses or did never functioned from the said addresses. The list
of such firms are given below:-

List of firms which were found to be non-existent/ non-operative during

verification

Total ITC
S. No. GSTIN Name of Firm Name of Prop. Taxable Value
passed on
1 02AWXPL1482A1ZO Lodha Enterprises Paras Lodha 10061001 1810980
Virender
2 05JOBPS5288N1Z1 VS Trading Co. 20750958 4012546
Sharma
3 05LSOPS5184C1Z6 Mahalaxmi Traders Soniya 31966418 9972330
4 05BYFPC450211ZZ Mahadev Enterprises PREAM CHAND 29356022 5284083
5 05EDJPD4565D1ZR A.R Trades BEENA DEVI 43677150 7861889
 Gurunanak
6 02BIIPR2951L1Z1 Varsha Rani 22778888 4100199
Enterprises
Shri Hanuman
7 05AVYPL0287B1ZG Leelaram 27065750 4871835
Enterprises
        185656187 37913862

12. During search of the residential address of Shri Vishal Khare on 30-

09-2021, the cheque book and the mobiles phones with SIM cards

were recovered which indicated that Shri Ashish Rajput and Shri

Mayank Gautam alias Rishi had full control of the operation related

to following firms with the help of Shri Vishal Khare.

List of firms whose either cheque books were recovered or

mobiles for OTP recovered
Total ITC
 S.No. GSTIN Name of Firm Name of Prop. Taxable Value
passed on
Shree Hanuman
1 09FCVPS9528B1ZS Ram Singh 12630034 2273405
Enterprises
2 05EMMPD4337R1ZI U.K Trders DEVENDRA 12022842 936430
DHARAMPAL
3 05HFJPS3239R1ZK Shivam Traders 54112123 9640182
SINGH
Maa Bhagwati
4 05BVRPT0935Q1ZO Tanuja 60866641 10955998
Enterprises
5 02ANAPC9640B1ZS Rohit Trading Co. Chandarkala 1920568 345702
6 09DBUPK6481B1Z7 Rudra Industries Ashish Kumar 44442815 7999708
7 09HHFPK5909F1Z3 VK TRADERS Vishal Kumar 42879645 7718334
8 09AUZPK0803A1ZQ Shri Jee Industries Manish Kumar 980850 176553
229855518 40046312

13. Based on the outcome of search conducted on 30-09-2021 and the

statements of Shri Ashish Rajput and Shri Mayak Gautam alias Rishi, Shri

Vishal Khare and Shri Salman Khan, recorded under section 70 of the CGST

Act, 2017 during 29-09-2021 to 01-10-2021, it was found that 24 bogus

firms were created by Shri Ashish Rajput and Shri Mayak Gautam alias

Rishi. This fact was categorically admitted by Shri Ashish Rajput and Shri

Mayak Gautam alias Rishi in their respective statements. It was also

admitted by Shri Ashish Rajput and Shri Mayak Gautam alias Rishi that they
had passed on fake ITC amounting to Rs.12.62 Crores, approx., through the

invoices issued from the said bogus firms. Accordingly, Shri Ashish Rajput

and Shri Mayak Gautam alias Rishi were arrested on 02-10-2021 at

Dehradun after due approval of the competent authority (Annexure-7)’

14. Information of suppliers and their bank details were called for from

M/s Tehri Iron & Steel Industries, Roorkee. The latter vide their e-

mail dt. 30-09-2021 provided the list (Annexure-8). From the list it

is apparent that Shri Ashish Rajput was involved in providing

invoices to M/s Tehri Iron & Steel Industries and received payments

against it with respect to following firm.

S.No  GSTIN Name of Firm

1. 02AWXPL1482A1ZO Lodha Enterprises
2. 05JOBPS5288N1Z1 VS Trading Co.
3. 05LSOPS5184C1Z6 Mahalaxmi Traders
4. 05BYFPC450211ZZ MAHADEV ENTERPRISES
5. 05EDJPD4565D1ZR A.R TRADES
6. 02BIIPR2951L1Z1 Gurunanak Enterprises
7. 05BVRPT0935Q1ZO Maa Bhagwati Enterprises
8. 05AVYPL0287B1ZG Shri Hanuman Enterprises
9. 05AQCPL4319D1ZB Lodha Enterprises

15. Only one truck operator M/s Simour Truck Operators Union,

Taruwala, Paonta Sahib, District Simour, Himachal Pradesh was

identified for transporting goods pertaining to M/s Gurunanak

Enterprises. Letter was sent to him (Annexure-9) for obtaining

documents pertaining to transportation of goods sent by the said

firm but the letter returned undelivered.

16. Statement of Shri Leelaram, Proprietor M/s Shri Hanuman

Enterprises was recorded on 16.11.2021 under Section 70 of the

CGST Act, 2017 (Annexure-10). In his statement Shri Leelaram had

revealed/ admitted the following:-

a) That he was a daily wager and worked as mason (राज मिस्त्री)

b) That he was educated upto class 5th standard.

c) That his PAN card and Aadhaar Card was taken by Shri
Vishal Khare, his relative, on the direction Shri Ashish
Rajput and Mayank Gautam alias Rishi on the pretext for
making firm for tender of iron scrap. He was assured
payment of Rs.5000.00 per month for giving his document
for the said purpose.
d) That an account was also opened in Axis Bank, Vikasnagar,
by using his documents but its pass-book and cheque book
was never given to him. That his signatures were taken on
all blank cheques of the cheque books on pretext of using it
for tender.
e) That he used to get Rs.5000.00 per month in cash through
Shri Vishal Khare for about four months.
f) That he did not made the firm M/s Shri Hanuman
Enterprises by himself.
g) That he did not trade in iron scrap from the said firm.
h) That he did not have any control on the activities carried out
from M/s Shri Hanuman Enterprises.
i) That Shri Ashish Rajput and Shri Mayank Gautam alias
Rishi had also obtained PAN card and Aadhaar Card of his
wife Smt. Beena Devi and my daughter Tanuja and made
M/s A R Traders (05EDJPD4565D1ZR) and M/s Bhagwati
Enterprises (05BVRPT0935Q1ZO), respectively and also
opened their accounts in Axis Bank. They took their pass
books and signed cheque books, as they have done with
him. No activities of these firms were in the knowledge of
my wife and my daughter. Shri Ashish Rajput and Shri
 Mayank Gautam alias Rishi gave Rs.5000.00 each per
month to my wife and my daughter for providing the said
documents.
j) That Shri Ashish Rajput and Shri Mayank Gautam alias
Rishi had also procured PAN card and Aadhaar Card of his
known persons and formed following firms:

Firm GSTIN Proprietor

Shri Hanuman 09FCVPS9528B1ZS Ram Singh
V S Trading 05JOBPS5288N1Z1 Virender Sharma
Sharma Industries 09MOPPS8537B1Z3 Dinesh Sharma
Shivam Traders 05HFJPS3139R1ZK Dharampal Singh
Ashirwad Trading 09GAVPS5023L1ZS Charan Singh
Company
Kumar Traders 05JIIPK5617Q1Z Amit Kumar
A P Enterprises 02GLNPD0933B1ZQ Meena Devi
NA NA Daya Ram

Shri Ashish Rajput and Shri Mayank Gautam alias Rishi

took their pass books and signed cheque books, as they
have done with him. They were also given a fixed amount
per month by Shri Ashish Rajput and Shri Mayank Gautam
alias Rishi.

17. Statement of Shri Manish Kumar, Proprietor M/s Shree Ji

Industries was recorded on 16.11.2021 under Section 70 of the

CGST Act, 2017 (Annexure-11). In his statement Shri Manish

Kumar had revealed and admitted the following:-

a) That he was educated upto 10th Standard, employed at a

shop of readymade garments and was getting insufficient
salary and was therefore looking for another employment.
b) That his friend Shri Vishal Khare introduced him to his
known Shri Ashish Rajput in July, 2021. Shri Ashish
Rajput assured him a payment of Rs.15,000.00 if he gave
his PAN and Aadhaar number for opening accounts in Bank
and allowed Shri Ashish Rajput to operate them. Then Shri
 Ashish Rajput took him to Pilibhit and opened accounts in
HDFC Bank and Bank of Baroda using his PAN and
Aadhaar number and took his pass-books, signed cheque
books and mobile SIM cards linked with those accounts.
c) That he did not know about any transactions carried out in
the name of M/s Shree Ji Industries which was made using
his PAN and Aadhaar number.
d) That Shri Ashish Rajput never gave him any money to him.
e) That as per his knowledge iron scrap traded in the name of
M/s Shree Ji Industries was arranged through Manoj alias
Chacha and Shri Yusuf Ansari.
f) That he did not know who made the invoices/ bills issue by
M/s Shree Ji Industries.
g) That as per his knowledge goods on the invoices issued by
M/s Shree Ji Industries was sent to Mandi Gobindgarh,
Punjab.

18. Statement of Shri Salman Khan, Proprietor M/s S.S. Trading

(09GVUPK7640M1ZH), was recorded on 18.11.2021 under Section

70 of the CGST Act, 2017 (Annexure-12). In his statement Shri

Salman Khan had revealed and admitted the following:-

a) That he was resident of Bijnore and had done MA in English

literature from Hindu Degree College, Chandpur, Bijnore.
b) That he was employed by Shri Ashish Rajput for his work
related to trading in iron scrap.
c) That in the year 2018 Shri Sumit Rajput of his village who
worked for Shri Ashish Rajput two firms using his PAN viz.
M/s S S Trading (09GVUPK7640M1ZH) and M/s Bharat
Enterprise (05GVUPK7640M1ZP) and gave him Rs.5000.00
for each firm per month for about six months and stopped
thereafter saying that there was no business done from the
said firms.
 d) That he did not know about the transactions made from the
said firms. All work related to issuing invoice or arranging
goods for these firms were administered by Shri Sumit
Rajput and Shri Ashish Rajput themselves.
e) That he arranged iron scrap, loaded it on trucks and
arranged weighment slips from dharamkanta for Shri Sumit
Rajput and Shri Ashish Rajput
f) That Shri Sumit Rajput and Shri Ashish Rajput opened bank
accounts in Kotak Mahindra Bank in Bijnore and Andhra
Bank in Dehradun by using his PAN and Aadhaar Card but
never gave him its pass-book or cheque book to him. They
kept his blank signed cheque book with them. He never
operated the accounts of the said banks.
g) That he did not constituted the said firms and never did any
transaction related to the said firms himself.

19. Letters were written to Banks for providing KYC documents used for

opening the accounts and also the details of transactions from the

given account. The details provided by some Banks so far are as

under:

S.No. Bank/ letter dt. Name of firm Name of Name of

person as per person as
GST per Bank
registration record
Virender Virender
V S Trading Co.
Sharma Sharma
Axis Bank, Gurunanak Varsha
Vikasnagar. Varsha Rani
1 Enterprises Rani
Letter
NA (Wrong
dt.08.11.2021
Maa Bhagwati account)
Tanuja
Enterprises

Axis Bank,
Sahastradhara. Mahalaxmi
2 Soniya Soniya
Letter dt. Traders
27.10.2021
3 Punjab National Mahavir Trading Pankaj Pankaj
 Bank, Co.
Dakpatthar. Gupta Traders Amit Kumar Amit Kumar
Letter Krishna Trading Shivam Shivam
dt.29.10.2021 Co. Sharma Sharma

It is pertinent to mention that M/s V S Trading Co. and M/s Maa

Bhagwati were found to be fake/ bogus in view of statement of Shri

Leelaram recorded on 16-11-2021 under Section 70 of the CGST

Act, 2017. M/s Gurunanak Enterprises and M/s Mahalaxmi

Traders were found to be fake/ bogus in view of statement of Shri

Ashish Rajput and Shri Mayank Gautam alias Rishi recorded under

Section 70 of the CGST Act, 2017 on 30-09-2021 and 01-10-2021,

respectively. The investigation revealed that no business activity was

noticed at the principal business of M/s Mahavir Trading Company

(Annexure-13). Similarly, cable operator service was noticed at the

business premises related to M/s Gupta Traders (Annexure-14). In

investigation in case of M/s Krishna Trading Company, its

proprietor Shri Shivam Sharma admitted that he had issued

invoices without actual supply of goods (Annexure-15).

20. From the bank statements mentioned in above para, the web of

transactions of each party is summarized below:-

a. M/s V S Trading Company:-

This firm had made financial transactions with parties, some of

them are given below :-

i. M/s Vimlesh Coils & Conductors,

ii. M/s Tehri Iron & Steel Industries,

 iii. M/s Shiv Enterprises,

iv. M/s Shri Hanuman Enterprises

v. M/s U S Enterprises

vi. M/s A S Traders

vii. M/s A R Traders

viii. M/s V S Trading

ix. M/s Mahalaxmi Traders

x. M/s Sharma Industries

b. M/s Gurunanak Enterprises:-

This firm had made financial transactions with parties, some of

them are given below:-

i. M/s Leelaram

ii. M/s V S Trading

iii. M/s Sri Hanuman Enterprises

iv. M/s Mahalaxmi Traders

c. M/s Mahalaxmi Traders:-

This firm had made financial transactions with parties, some of

them are given below:-

i. M/s V S Trading

ii. M/s Mahadev Industries

iii. M/s Tehri Iron & Steel Industries

iv. M/s Shivam Traders

v. M/s Sharma Industries

 vi. M/s A R Traders

vii. M/s Lodha Enterprises

viii. M/s Shri Hanuman Enterprises

d. M/s Mahavir Trading Company:-

This firm had made financial transactions with parties, some of

them are given below :-

i. M/s Tehri Iron

ii. M/s Navya Enterprises

iii. M/s Shivam Sharma

iv. M/s Gupta Traders

v. M/s M K Traders

e. M/s Gupta Traders:-

This firm had made financial transactions with parties, some of

them are given below :-

i. M/s Mangalam Enterprises

ii. M/s Balaji Re-Rolling

iii. M/s Amit Enterprises

iv. M/s Krishna Trading

v. M/s Tehri Iron & Steel

vi. M/s GSKR International Pvt. Ltd.

vii. M/s Mahavir Enterprises

 viii. M/s Shivam Sharma

f. M/s Krishna Trading Company:-

This firm had made financial transactions with parties, some of

them are given below:-

i. M/s Amit Enterprises

ii. M/s Tehri Iron

iii. M/s Shubham Sharma

iv. M/s Mahavir Enterprises

v. M/s Shri Balaji Industries

vi. M/s Vimalesh Coils

21. From the above bank statements it is apparent that there was

circular trading among some of the parties appearing in bank

statements as evident from the accounts of non-existing and non-

operative firms as mentioned in Para-19 above. The evidence also

indicate that Shri Ashish Rajput and Shri Mayank Gautam alias

Rishi were controlling banking operations pertaining to most of the

firms mentioned in the charge-sheet. It is also pertinent to mention

that the name of “Rishi” is mentioned with “Tehri Iron” in bank

statements related to M/s Mahavir Trading (05APVPB1478F1ZU),

M/s Gupta Traders (05BCMPK7638D2ZH) and M/s Krishna

Trading Company (05GFVPS9442Q1Z1).

22. Role of Shri Ashish Rajput: Ashish Rajput is the main person who

is behind the whole idea of creating bogus firms in partnership with

 Shri Mayank Gautam alias Rishi. Shri Ashish Rajput and Shri

Mayank Gautam had their separate roles and had distributed their

responsibilities in entire scam of issuance of fake invoices to pass

on ineligible input tax credit to the end user. Shri Ashish has

responsibility of formation of bogus firms on the basis of documents

of other persons, mostly poor and in need of money, giving them

assurance of certain financial help and get such firms registered

with the GST department, contacting the client factories for

supplying invoices and pursuing for payment, disposal of

funds/payment and ensuring GST compliance in respect of bogus

firms. In case of any notice enquiry by the any govt. department, it

was also looked after by Shri Ashish Rajput by arranging counsel

etc.

23. Role of Shri Mayank Gautam alias Rishi: Mayak Gautam was

responsible for making arrangements of goods through the persons

e.g. Shri Salman Khan, employed by them. He was also responsible

for getting the documents from the person on the basis of whose

Ids/documents fake firms has to be created by Shri Ashish Rajput.

Procurement of goods from open market (kabadis) on cash, hustle

free transportation of goods upto the client’s place, payment to the

kabadis as well as their employees was looked after/supervised by

Shri Mayank Gautam alias Rishi. In other words the field related

works were looked after by Shri Mayank Gautam.

24. Modus Operandi: Bogus firms were created and Managed jointly by

Shri Ashish Rajput and Shri Mayank Gautam alias Rishi and profit

earned thereon was shared by them. They used to get Iron Scrap

arranged from the open market (Kabadis) on which no GST was

paid and the said goods were used to get dispatched directly from

the godown of the KABADI to the buyers premises. In order to

camouflage this non GST paid Goods as GST paid legitimate Goods,

Invoices were issued from the bogus firms in the name of buyers.

Since the invoices are issued from the bogus firms, to legitimize the

supply, GST has to be paid against such invoices issued by the

bogus firm. However the firms are bogus and non existent /non

operative and no inward supply/ purchase is done by such firms,

therefore no ITC is available to them. Therefore, they were

mandated to pay GST from cash ledger against such invoice issued

from these bogus firms. In order to avoid any payment of Tax from

the cash ledger they used to issue only invoices without any supply

of goods from bogus firms in the name of their firms so that they

could avail and utilize this fraudulent ITC for payment of GST

against the invoices issued by them (bogus firms created by Shri

Ashish Rajput and Shri Mayank Gautam). Thus, Shri Ashish Rajput

and Shri Mayank Gautam alias Rishi had issued only invoices from

their bogus firms without any supply of goods from these firm and

also, they availed and utilized fraudulent ITC without any receipt of

goods. They had full control of the financial transaction related to

the bogus firms created by them. They had taken all banking

instruments in their control to operate bank accounts of linked with

 the bogus firms created by them. They had obtained signatures of

the proprietors of the bogus firms on the blank cheque books in

order the withdraw or transfer money according to their need.

25. In view of the investigations conducted, it is clearly substantiated

and established that Shri Ashish Rajput and Shri Mayank Gautam

alias Rishi, have violated following provisions of the CGST Act, 2017

as under:-

Section 132(1)(b) - They had issued invoices or bill from the bogus/

fake firms created by them without actual supply of goods or

services from the said fake/ bogus firms, in violation of the

provisions of the CGST Act, 2017 and rules made thereunder

leading to wrongful availment or utilisation of input tax credit,

Section 132(1)(f) – Shri Ashish Rajput and Shri Mayank Gautam

alias Rishi had falsified various financial records in the form of

returns filed under the CGST Act, 2017 and created documents

having false information such as fake invoices, e-way bills etc. with

an intention to evade tax due under this act.

Section 37, 38 & 39 – Shri Ashish Rajput and Shri Mayank

Gautam alias Rishi had contravened the provisions of Section 37, 38

& 39 of the CGST Act, 2017, in as much as they were involved

deliberately in misstating the outward supply, inward supply as well

as statutory returns disclosing the GST liability of the firms created,

controlled and managed by them.

Section 2(66) defines “invoice” or “tax invoice” means the tax

invoice referred to in Section 31;

Section 31(1) further mandates that

“A registered person supplying taxable goods shall, before or at the

time of,—

(a) removal of goods for supply to the recipient, where the supply

involves movement of goods; or

(b) delivery of goods or making available thereof to the recipient, in

any other case;

issue a tax invoice showing the description, quantity and value of

goods, the tax charged thereon and such other particulars as may

be prescribed”:

Rule 21 of the CGST Rules,2017 lays that the registration liable to

be cancelled, if the said person does not conduct any business from

the declared place of business or issues invoice or bill without

supply of goods or services in violation of the provisions of this Act,

or the rules made thereunder.

Section 7 of the Act: Definition of Supply:

(1) For the purposes of this Act, the expression “supply” includes––

(a) all forms of supply of goods or services or both such as

sale, transfer, barter, exchange, licence, rental, lease or

disposal made or agreed to be made for a consideration by

a person in the course or furtherance of business;

 (b) import of services for a consideration whether or not in

the course or furtherance of business;

(c) the activities specified in Schedule I, made or agreed to

be made without a consideration; and

(d) the activities to be treated as supply of goods or supply

of services as referred to in Schedule II.

(2) Notwithstanding anything contained in sub-section (1),––

(a) activities or transactions specified in Schedule III; or

(b) such activities or transactions undertaken by the

Central Government, a State Government or any local

authority in which they are engaged as public authorities,

as may be notified by the Government on the

recommendations of the Council,

shall be treated neither as a supply of goods nor a supply

of services.

(3) Subject to the provisions of sub-sections (1) and (2), the

Government may, on the recommendations of the Council, specify,

by notification, the transactions that are to be treated as—

(a) a supply of goods and not as a supply of services; or

(b) a supply of services and not as a supply of goods.

Section 132(1)(b) of the CGST Act, 2017 lays that issuance of any

invoice or bill without supply of goods or services or both in violation

of the provisions of CGST Act, 2017 or the rules made thereunder

leading to wrongful availment or utilisation of input tax credit or

refund of tax; shall be punishable–

(i) in cases where the amount of tax evaded or the amount of

input tax credit wrongly availed or utilized or the amount of

refund wrongly taken exceeds five hundred lakh rupees, with

imprisonment for a term which may extend to five years and

with fine;

(ii) in cases where the amount of tax evaded or the amount of

input tax credit wrongly availed or utilized or the amount of

refund wrongly taken exceeds two hundred lakh rupees but

does not exceed five hundred lakh rupees, with imprisonment

for a term which may extend to three years and with fine;

(iii) in the case of any other offence where the amount of tax

evaded or the amount of input tax credit wrongly availed or

utilized or the amount of refund wrongly taken exceeds one

hundred lakh rupees but does not exceed two hundred lakh

rupees, with imprisonment for a term which may extend to one

year and with fine;

(iv) in cases where he commits or abets the commission of an

offence specified in clause (f) or clause (g) or clause (j), he shall

be punishable with imprisonment for a term which may extend

to six months or with fine or with both.

Section 132 (5) lays that the offences specified in clause (a) or

clause (b) or clause (c) or clause (d) of sub-section (1) and

punishable under clause (i) of that sub-section shall be cognizable

and non-bailable.
26. Since the matter is still under investigation for want of submission

of further documents related to subject matter and recording of

statements of persons concerned, the department reserves right to

file additional/supplementary complaint in this case, if any, should

new evidence emerges against the accused during the course of

further investigation.

27. From the aforesaid facts, it is apparently clear that Shri Ashish

Rajput and Shri Mayank Gautam alias Rishi, passed on input tax

credit to the tune of Rs.12,62,76,365/-, which is more than 5

Crore, by issuing of invoices or bills without actual supply goods

under the name of non-existent/ bogus firms created by them to

various ultimate business buyers/ end users, on invalid sales

invoices, Shri Ashish Rajput and Shri Mayank Gautam alias Rishi

have committed offences punishable under section 132 (1) (b) of

the CGST Act, 2017.

28. The complainant desires to examine the witnesses listed in

appended Annexure-15 and seeks to rely upon the documents as

mentioned in Annexures above. Although, the evidences collected

and discussed above are sufficient for prosecution of the accused in

the case, the complainant reserves the right to examine more

witnesses and also adduce more documentary evidences in the

matter, if need so arise, as the investigation in the matter is still

under process.
 Therefore, it is prayed that Ld. Spl. CJM may be pleased to take

cognizance of offences to stand trial of accused and punish them in

accordance with the law.

FILED BY:

Union of India

(Ajit Kumar Tiwari)

Senior Intelligence

Officer

Through

Meerut.11.2021 (Lakshya Kumar

Singh)

SPP, Meerut Zone