Chandigarh/Ludhiana, Feb 12: The Punjab Taxation Department has intensified its crackdown on financial irregularities and internal misconduct, as Ludhiana-based businessman has been arrested for a Rs 9 crore GST fraud amid the dismissal of a department official. Finance, Excise and Taxation Minister Advocate Harpal Singh Cheema announced on Thursday that the state is maintaining a zero-tolerance policy toward both tax evasion and administrative indiscipline.
The enforcement action was led by the State Intelligence and Preventive Unit in Ludhiana, which targeted M/s MAA STEEL. The proprietor of the firm, Rohit Gupta, was taken into custody after investigators uncovered a network involving the issuance of fake invoices for HR/CR coils and strips. Cheema mentioned that these invoices were generated without any actual transfer of goods to illicitly pass on Input Tax Credit.
“The Taxation department has unmasked a significant GST fraud where M/s MAA STEEL was found issuing fake invoices for HR/CR Coils and Strips without any actual supply of goods,” Cheema said. He noted that the fraudulent network resulted in a loss exceeding Rs 9 crore to the state exchequer and that physical stock at the premises did not match official records.
The investigation is now expanding to include various manufacturers of cycle and spare parts. The Minister noted that these entities are suspected of claiming improper export refunds or benefits through an inverted duty structure. He said the government is committed to protecting state revenue and ensuring fairness for honest taxpayers.
In a separate move to ensure departmental accountability, an Excise and Taxation Inspector was dismissed for a prolonged unauthorized absence. The Minister mentioned that this action was taken under the Punjab Civil Services (Punishment and Appeal) Rules, 1970.
“The Bhagwant Mann Government remains resolute that no form of indiscipline will be tolerated under any circumstances,” the Finance Minister said. He mentioned that the government has already terminated four employees for similar conduct, with proceedings currently active against another inspector and a clerk. Cheema said these steps reflect a broader commitment to a disciplined work culture and efficiency within public service.
