Senior Official of Chinese Smartphone Maker Arrested in Thane for ITC Fraud of Rs. 19 Crore

The Central Goods and Services Tax (CGST) Commissionerate of Mumbai Zone on Wednesday arrested a senior official of a Chinese smartphone maker in Maharashtra's Thane district for allegedly fraudulently availing input tax credit (ITC) worth Rs 19 crore through fake invoices. Manager of Finance and Accounts division of Oppo Mobiles India, Mahendra Kumar Rawat, was arrested in Bhiwandi town and later produced in a local court, which remanded him in judicial custody till April 3, the CGST Bhiwandi Commissionerate said in statement.

Based on material evidence gathered during the investigation, he was arrested under section 69 of the CGST Act, 2017 for contravention of section 132 of the same Act.

The investigation carried out by the anti-evasion wing of the CGST Bhiwandi Commissionerate revealed that Oppo Maharashtra was involved in availment of fake ITC without receipt of any goods, the statement said.

"The supplier of Oppo Mobiles India Pvt ltd, M/S Gain Hero India Private Limited, was found to be non-existent at its principal place of business. In this connection, 16 e-way bills for the said transaction were verified and found to be fake. Further, statements of the transporters and vehicle owner were recorded, wherein it was revealed that there was no supply of goods to Oppo Maharashtra," it said.

Rawat, authorized signatory and Manager Finance and Accounts of Oppo Mobiles India, is the main person who has played a key role in availing of the said fraudulent ITC amounting to Rs 19,27,54,093 against the invoices amounting to Rs 107,08,56,072 issued by Gain Hero India, without receipt of the goods, it added.

The accused has admitted in his statement that the e-way bills generated are fake, the CGST Commissionerate said.

This case is part of the special drive launched by the CGST Mumbai Zone against tax fraudsters and tax evaders. CGST Bhiwandi Commissionerate has arrested 24 persons in the last 18 months itself, said Sumit Kumar, Commissioner, Central GST Bhiwandi.