Ind-Swift group - Frauds!!!

DGCEI UNEARTHS HUGE CENVAT FRAUD New Delhi,March 14, 2006: Tax authorities have unearthed a huge racketin Cenvat claims by manufacturers, who used fictitious invoices to claimcredit on central excise duty payments and in the process robbed thegovernment exchequer of several hundred crores of rupees. "Ind Swift Group of Companies had taken credit worth crores of rupees onthe basis of invoices of fictitious or non existent or non-registeredmanufacturers and dealers," said the Directorate General of CentralExcise Intelligence.During its nationwide operation on March 8, DGCEI had raided and seizedincriminating documents from the office and factory premises ofChandigarh-based Ind Swift and a large number of manufacturers anddealers in Ghaziabad and Noida.This is only the tip of the iceberg and a large number of dealers andmanufacturers are involved in Cenvat misuse in several parts of thecountry like Faridabad, Naraina (Delhi), Mandi Govindgarh, Vashi (NewMumbai), Hyderabad and Ahmedabad, it said."Further investigations are expected to unearth fraudulently availedCenvat running into several hundred crores of rupees," DGCEI said andwarned that it would come down heavily on fraudsters.According to rules, manufacturers of excisable goods are entitled totake credit of the central excise duty paid on inputs, while payingexcise duty on finished products.Dealers trading in excisable goods, issue invoice showing duty paymentin respect of goods traded by them and actual manufacturers are entitledto use these invoices to take credit on the duty paid on inputspurchased from traders.Investigating agencies suspect large-scale issue of fake invoicesresulting in huge loss to the government exchequer.(PTI)