HYDERABAD: A division bench of Telangan HC on Thursday dismissed the petitions filed by the directors of Sujana Universal Industries Limited and other shell companies floated by Sujana Group challenging the summons issued by the authorities of anti-evasion wing of Hyderabad GST commissionerate.
The bench refused to grant relief to the petitioners against arrest as they have allegedly involved in circular trading with a turnover on paper to the tune of about `1,289 crore and a benefit of input tax credit (ITC) to the tune of `225 crore.
The bench comprising Justice V Ramasubramanian and Justice P Keshava Rao was dismissing the petitions filed by the directors of Sujana Universal Industries Limited, VS Ferros Enterprises Private Limited, Infinity Metals Products India Limited, Hindustan Ispat Private Limited, EBC bearings India Limited, Hyderabad Steels, MSR India Limited and Suyati Impex Private Limited with a plea for stay of all further proceedings against them, including their arrest, pursuant to the summons issued on February 27 this year.
After hearing the case and perusing the material on record, the bench found that the companies’ documents clearly showed circular trading without there being any actual trading and that one of these entities had availed huge credit facilities of about `15 crore from a nationalised bank.
These companies also created fake GST invoices to enable their friendly business entities to take input tax credit; and in that process they defrauded the revenue to the tune of several crores of money and by availing credit facilities from banks by showing these turnover, they also defrauded the banks, the bench noted.