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The Finance and Accounts Manager of Oppo Mobiles India Private Limited, Mahendra Kumar Rawat, has been arrested by the Central Goods and Services Tax (CGST) Commissionerate for allegedly availing of input tax credit (ITC) worth Rs 19 crore through fake invoices. Rawat was later produced in a local court in Bhiwandi town and remanded in judicial custody until April 3.

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According to the CGST Bhiwandi Commissionerate’s statement, Rawat was arrested under section 69 of the CGST Act, 2017, for contravening section 132 of the same Act. The investigation conducted by the anti-evasion wing of the CGST Bhiwandi Commissionerate found that Oppo Maharashtra was involved in fraudulently availing of fake ITC without receipt of any goods.

The investigation further revealed that the supplier of Oppo Mobiles India Pvt Ltd, M/S Gain Hero India Private Limited, was non-existent at its principal place of business. Additionally, 16 e-way bills for the said transaction were verified and found to be fake. Statements of the transporters and vehicle owner were recorded, revealing that there was no supply of goods to Oppo Maharashtra.

Rawat, as the authorized signatory and Manager of Finance and Accounts of Oppo Mobiles India Private Limited, played a key role in availing of fraudulent ITC amounting to Rs 19,27,54,093 against invoices amounting to Rs 107,08,56,072 issued by Gain Hero India Private Limited, without receipt of the goods. The accused admitted in his statement that the e-way bills generated were fake, according to the CGST Commissionerate.

The case is part of the special drive launched by the CGST Mumbai Zone against tax fraudsters and tax evaders. The CGST Bhiwandi Commissionerate has arrested 24 persons in the last 18 months.

This incident raises concerns about the credibility of the business practices of Chinese smartphone makers in India. As smartphone penetration in India continues to grow, it is essential for companies to maintain transparency and integrity in their financial transactions. Failure to do so could result in significant penalties, which could adversely affect their reputation and market position. This case serves as a warning to other companies to adhere to the law and avoid fraudulent practices.

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