Mumbai: The Department of Central Goods and Services Tax has moved the classes court docket to hunt the cancellation of bail for the joint managing director and two high executives of Shemaroo Entertainment Ltd who had been booked for alleged tax evasion. Atul Maru, the joint managing director of Shemaroo, Hiren Uday Gada, the chief govt officer, and director of Shemaroo, and Amit Haria, the chief monetary officer of Shemaroo, had been arrested on September 6 for alleged GST fraud amounting to ₹70 crores. The three had been produced earlier than the Justice of the Peace’s court docket on September 7, and the court docket instantly granted bail to them. The division has now approached the classes court docket to request the cancellation of their bail.

In searching for the cancellation of bail, the GST division has said that the Justice of the Peace’s court docket failed to understand the prima facie documentary proof in opposition to the three and the truth that they’re being investigated for inflicting a ₹70.25 crore loss to the federal government exchequer. The classes court docket has issued a discover to the three and requested them to reply to the division’s plea by November 29.

Investigation reveals uncommon transactions in corporations linked to Shemaroo

The company claims that the corporations, particularly M/s. Uttam Movies, M/s. Mangal Entertainment, M/s. JDS Motion Pictures, and M/s. JVS Media Solutions, are registered with the GST Department on the similar tackle in Andheri (East). The division started probing these corporations when it realised there was an unusually excessive quantity of availing and passing of Input Tax Credit (ITC).

The division additional initiated an investigation into Uttam Movies and questioned one of many companions and approved signatory, Jhaverchand Soni. Soni, in his assertion, claimed that he had labored with Shemaroo since 1988. He alleged that Maru had contacted him and provided to pay him and his spouse a sum of ₹1.50 lakhs yearly and to easily signal papers of the agency for him. Soni mentioned Maru said that he would handle all of the affairs of the agency and was additionally managing the accounts of the agency.

The company claims that Maru, in his assertion, admitted that that they had created the mentioned dummy corporations within the identify of Soni, his spouse, and another individuals on paper just for availing and using Input Tax Credit with out the availability of products or providers. The company additional claims that ITC was availed by way of the mentioned corporations with out procuring any providers or items, and the enterprise transactions with the mentioned dummy corporations existed solely on paper.

The company additionally alleges that Maru, by way of these corporations, availed ITC advantages amounting to ₹70.25 crores. ‘They have availed ITC from pretend suppliers whose registration was cancelled suo-moto/ab-initio/on software of the taxpayer, in order to trigger income loss to the federal government exchequer,’ the GST division mentioned in its plea.

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Published on: Thursday, October 26, 2023, 10:25 PM IST