Date: 2025-08-01Category: Not ApplicableState: Union GovernmentCountry: India
CGST & Central Excise Raigad Commissionerate arrests two persons for fraudulently availing Input Tax Credit of Rs. 9 crore through shell firms in New Panvel, Raigad, Mumbai Zone
**Summary:**
On August 1, 2025, the Ministry of Finance, CGST Central Excise Raigad Commissionerate, Mumbai Zone, announced the arrest of two individuals, Mukesh Devnarayan Tiwari (resident of New Panvel) and Sandeep Nanhelal Modanwal (resident of Dombivli W), for fraudulently availing Input Tax Credit (ITC) totaling over Rs. 9 crore. The accused operated shell firms, including Ms. Jaisha Metals Private Limited, to generate and pass on fake ITC through fictitious invoices without actual supply of goods or services. Ms. Jaisha Metals Private Limited was found to be non-operational at its registered principal place of business. Both individuals, directors of Ms. Jaisha Metals Private Limited, were arrested under Section 69 of the CGST Act, 2017, for offenses punishable under Section 132(1)(b) and 132(1)(c) of the CGST Act, 2017 and were produced before the Judicial Magistrate First Class, Panvel, who remanded them to judicial custody. An investigation is ongoing to identify other beneficiaries and operators involved in the fraudulent invoice scheme. This information was released by PIB Delhi. Release ID: 2151601.
Key Entities Referenced
Ministry of Finance: The government ministry responsible for financial matters.
CGST Central Excise Raigad Commissionerate: A commissionerate of the Central Goods and Services Tax (CGST) and Central Excise department located in Raigad, Maharashtra.
New Panvel, Maharashtra: A city in Raigad district, Maharashtra, where shell firms were located.
Mumbai Zone: The zone under which the CGST Central Excise Raigad Commissionerate falls.
Input Tax Credit: A mechanism to avoid double taxation under GST regime.
Ms. Jaisha Metals Private Limited: The private limited company that availed ineligible Input Tax Credit.
Shri Mukesh Devnarayan Tiwari: One of the Directors of Ms. Jaisha Metals Private Limited, arrested for fraudulently availing ITC.
CGST Act, 2017: The Central Goods and Services Tax Act, the legal framework under which the arrests were made.
Ministry of Finance
CGST & Central Excise Raigad Commissionerate
arrests two persons for fraudulently availing Input
Tax Credit of Rs. 9 crore through shell firms in New
Panvel, Raigad, Mumbai Zone
Posted On: 01 AUG 2025 9:01PM by PIB Delhi
A team of officers of Anti-Evasion, CGST & Central Excise Raigad Commissionerate, Mumbai Zone,
yesterday arrested two persons involved in generating and fraudulently passing on Input tax Credit (ITC) of
more than Rs. 9 crore by creating fictitious firms and issuing invoices without actual supply of goods/service.
Acting upon intelligence, the team identified the shell firms being operated by the accused to avail and pass
on fake ITC. M/s. Jaisha Metals Private Limited availed ineligible credit passed on by non-existent firms
registered based on forged documents. M/s. Jaisha Metals Private Limited was found non-operational at the
registered principal place of business evidencing no goods received or supplied.
The investigation revealed that the Directors of M/s. Jaisha Metals Private Limited, Shri Mukesh Devnarayan
Tiwari, resident of New Panvel, and Shri Sandeep Nanhelal Modanwal, resident of Dombivli (W) were
actively involved in the fraudulently availed ITC. Both were arrested under section 69(1) of CGST Act, 2017
for offences punishable under Section 132(1)(b)/132(1)(c) of CGST Act, 2017 and produced before the
Judicial Magistrate First Class, Panvel. The court has sent both persons to judicial custody.
Further investigation is in progress to identify other beneficiaries and operators of this fake invoice racket.
****
NB/KMN
(Release ID: 2151601)