Chandigarh: A Ludhiana-based businessman was on Thursday arrested in a Rs 9-crore GST fraud case, while an excise and taxation inspector was dismissed from service due to prolonged unauthorised absence.Punjab finance minister Harpal Singh Cheema said a major operation conducted by the State Intelligence and Preventive Unit, Ludhiana, led to the arrest of Rohit Gupta, proprietor of a Ludhiana-based firm. Elaborating on the case, he stated, “The taxation department unmasked a significant GST fraud where the firm was found issuing fake invoices for HR/CR coils and strips without any actual supply of goods. This fraudulent network managed to pass on input tax credit exceeding Rs 9 crore to various beneficiaries, causing a direct and substantial loss to the state exchequer. During the search, the taxation department teams also discovered glaring discrepancies between the physical stock available on the premises and the firm’s official book records.”
Cheema revealed that the investigation was widening in scope. “We are investigating several manufacturers of cycle parts and spare parts who are suspected of being part of this scam. These entities are under the scanner for improperly claiming export refunds or benefits through an inverted duty structure. Our govt remains committed to vigorously combating tax evasion, protecting govt revenue, and ensuring a level playing field for every compliant taxpayer in Punjab,” he said.Cheema also announced the Punjab govt dismissed an excise and taxation inspector with immediate effect under the Punjab Civil Services (Punishment and Appeal) Rules, 1970, following due process in connection with the official’s prolonged unauthorised absence.
