Regional Tax Office (RTO) Faisalabad has reportedly busted an organised gang involved in business of fake /flying invoices and conducted raids to arrest "king of invoices" in various parts of Punjab. Sources told Business Recorder here on Sunday that the Federal Board of Revenue (FBR) had extended the amnesty scheme till April 15 following an encouraging response from the textile sector to clear their past sales tax liabilities.
The scheme under SRO 179(I)/2013 was extended for a 15-day period for the textile sector. During this period, the RTO Faisalabad collected ample evidence against influential gang leader known as "king of invoices" in Faisalabad. On Sunday, RTO Faisalabad unearthed an organised mafia involved in business of fake/flying invoices to claim fraudulent refunds. Illegal transactions of billions were carried out to committee tax fraud. CNICs of poor people were used to open bank accounts to show banking transactions to evade the authorities. FIR was registered against the gang and arrests were made in Faisalabad. The investigation showed that the 'king of invoices' was behind the whole fraudulent activities and operating the mafia of fake/flying invoices. The RTO Faisalabad has co-ordinated with other agencies to arrest Chitta or 'king of invoices' for reaching the real culprit.
According to the FIR registered in the said case, in pursuance of an information regarding alleged fraudulent transactions by M/s Mehmood Ahmed Weaving Factory , Faisalabad, having sales tax registration No 2400521002882, it has been observed that Muhammad Nouman, Muhammad Ishtiaq and others made fake business transactions in the name of M/s Mehmood Ahmed Weaving Factory, Faisalabad and were found involved in fraudulent purchases and subsequently facilitating the suppliers of textile sector to evade payment of Tax as per SRO 283(I)/2011 as amended vide SRO 1125(I)/2011 which are actually made to unregistered person and causing heavy loss to the national exchequer.
Mehmood Ahmed, the proprietor of Mehmood Ahmed Weaving Factory, Muhammad Ali Street, Sammundri Road, Faisalabad was called upon to show cause vide C.No 932 dated January 30 this year by the Commissioner IR, Zone-III, RTO, Faisalabad, as to why he may not be suspended in terms of section 21(2) of the Sales Tax Act, 1990 read with Chapter-I, Rule-12 of SRO 555(I)/2006 dated 05.06.2006 and clause "N" of Sales Tax general Order No 35 of 2012 dated 30.06.2012. During hearing proceedings the proprietor also produced undertaking on stamp paper that he has not conducted any business for last four years and he is defaulter of Wapda and bank etc since then he is earning his living by doing labour works. He also stated that he doesn't know about the sales tax transactions appearing in the record of M/s Mehmood Ahmed Weaving Factory and that these are fake/bogus/non genuine and these may be incorporated by his lawyer Nouman. Subsequently the registered person have been black-listed vide No 1050 dated February 27 this year.
During initial scrutiny of record of M/s Mehmood Ahmad Weaving, Faisalabad having Sales Tax Registration No 2400521002882, it has been observed that sales tax registration of said unit was got by Mehmood Ahmad with the help of Nouman Consultant on November 5, 2008. During inquiry from Mehmood Ahmad owner of M/s Mehmood Ahmad Weaving, he stated that he never done any business after 2009 due to bank default and heavy financial crises. He further stated that consultant has efiled sales tax returns with effect from 11/2008 to 11/2009 with my permission/authority. On inquiry about returns filed by M/s Mehmood Ahmad Weaving for the period between December 2011 and January 2013 for valuing more than Rs 3433 million, he stated that he never filed returns for said period. However, he further stated that his firm's pin code, password remained with his consultant.
In the light of above findings, the Blacklisting Order was passed by the Commissioner IR, Zone-III. During further inquiry, it has been observed that consultant was called and asked him about above facts.