The list of suspicious PAN number released by the Finance Ministry today features some big houses involved in stealing money from national coffers by producing fake Value Added Tax (VAT) bills.
In a 'Report on Study and Investigation of Fake and Fictitious VAT bills-2011' released today by Finance Ministry to the Right to Information campaigner Taranath Dahal after the National Information Commission’s directives, ‘surprisingly’ some big names have also been found involved in VAT fraud scam.
“It is the largest corruption of the decade," Dahal said, after receiving the report.
The ministry had formed a committee on February 21 to investigate the fake VAT bills scam that is expected to have bleed government coffer of Rs 10 billion including fine.
The team had submitted the 33-page report on March 4. According to the ministry, it has been investigating some 518 cases of the VAT default. Some of the biggest corporate houses including Golchha Organisation, Chaudhary Group, TM Dugar Group, Shankar Group and Bishal Group are among the 437 firms of the suspicious PAN list.
The list includes Him Electronics of Golchha Organisation, Varun Developers, CG Electronics Pvt Ltd, CG Impex Pvt Ltd, CG Foods Pvt Ltd of Chaudhary Group, Dugar Brothers and Sons and Dugar Auto Clinic Pvt Ltd of TM Dugar Group, Jagadamba Steel of Shankar Group and Rasuwa Construction Company in its VAT fraud list.
Similarly, United Distributer, a close partner of Vishal Group, Bhatbhateni Super Market, Morong Auto Works and Chameliya are also involved in producing fake VAT bill, according to the report.
Going through the list, the fake VAT bill scam has two separate cases; one without any trade and transaction faking the VAT bills and claiming reimbursement from the government coffer — which is a financial crime — and another under invoicing and cheating the tax.
The government report revealed that some seven different firms have been reimbursed. Of the seven, the ministry has decided to refund Rs 5.41 million from Sarita Enterprises, Rs 5.31 million from Sarita International, Rs 17.22 million from Ashutosh Impex Pvt Ltd, Rs 16.94 million from Shivashakti Impex, Rs 11.26 million from Digambar Trade House, Rs 45.60 from Digambar Trade International and Rs 14.35 from Bhimeshwar Trade House. After lots of pressure from the public, the Finance Ministry has agreed to probe into the fake VAT bill scam. However, the Finance Ministry did not reveal the names and actual amount cheated by the firms. Similarly, it also did not provide the name list of large taxpayers.