LUDHIANA: A Mandi Gobindgarh-based firm has been found guilty of evading VAT worth Rs 2.77 crore by depositing 2% tax instead of 14.30% on sales worth Rs 22.53 crore. The firm did this by submitting fake C-forms to the excise and taxation department.
Along with initiating proceedings as per the VAT Act, the department has also ordered registration of an FIR against the accused.
Ludhiana's deputy excise and taxation commissioner (DETC) JK
Jain said
Jaspal Singh and
Jaswinder Kaur, owner of the firm
M/S Worldwide Products Pvt Ltd that is in the business of manufacturing of steel chairs, showed sales worth crores to different parties in New Delhi against C-forms and submitted 11 of these to the department in which the sale was shown to be of Rs 22.53 crore. The firm paid 2% central sales tax (CST) too while submitting the forms (which is applicable against C-form sales). On suspicion, the department started an investigation and found out that the C-forms that the firm had submitted were fake and this was also confirmed by the trade and taxes department, New Delhi.
Jain said, "The accused have caused a loss of Rs 2.77 crore to the department. This is a clear-cut case of fraud and that is why we have immediately ordered an FIR. Police investigation will find from where they got the C-forms printed."
Jain said department was also investigating the previous sale-purchase entries of the firm to find possibility of any other instance of evasion.