FAISALABAD: The Regional Tax Office (RTO) Faisalabad obtained physical remand of Chitta or ‘king of invoices’, who was heading an organised gang involved in business of fake/flying invoices. Chitta is said to be mastermind of the sales tax refund scam who had managed to escape arrest for the last one year.
The accused sought a bail-before-arrest but the Special Judge Customs, Taxation and Anti-Smuggling Lahore turned down his application. The court also granted his four-day physical remand to the RTO Faisalabad. The RTO reportedly busted an organised gang involved in business of fake /flying invoices last year. The tax officials also collected evidence against influential gang leader known as “king of invoices” in Faisalabad. The organised mafia was involved in business of fake/flying invoices to claim fraudulent refunds. Illegal transactions of billions were carried out to commit tax fraud. CNICs of poor people were used to open bank accounts to show banking transactions and 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.
Later, RTO Faisalabad stepped up efforts to arrest more members of the gang in Punjab and another member of fake invoices gang namely Muhammad Adnan was arrested from Faisalabad yarn market in connection with tax fraud in billions. According to the FIR, 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, owner Mehmood Ahmed Weaving Factory, Muhammad Ali Street, Samundri Road, Faisalabad was served a show cause vide C No 932 dated January 30, RTO Zone-III IR Commissioner as to why proceedings may not be initiated against him in terms of section 21(2) of the Sales Tax Act, 1990 read with Chapter-I, Rule-12 of SRO 555(I)/2006 dated June 5, 2006 and clause “N” of Sales Tax general Order No 35 of 2012 dated June 30, 2012. He, however, during proceedings produced undertaking on stamp paper that he had not conducted any business for the past four years and that he was a defaulter of the Fesco and bank etc
