CGST Mumbai Central Commissionerate arrested the directors of two companies for allegedly availing of tax credit in a fraudulent manner. 

Sanjiv Pravin Mehta, director of Shah Brothers Ispat Pvt Ltd, and Vinaykumar D Arya, director of V N Industries, both were arrested for availing of ineligible credit of Rs. 5.20 crore and Rs. 2.03 crore.

Investigation revealed that the companies were only exchanging invoices for so-called sale and purchase. 

There was only paper and invoice movement, but no actual sale or purchase of goods. 

These exchanges were being done with a malafide intention to defraud the exchequer by opening Letters of Credit on fake purchase transactions. #casansaar (Source - NewsOnAir)