Chandigarh, May 8
Finance, Excise and Taxation Minister Advocate Harpal Singh Cheema on Friday announced a major breakthrough by the State Intelligence and Preventive Unit (SIPU). Revealing the details of the crackdown, Cheema said, “Today, Taxation department has successfully dismantled a highly organized fake billing network, resulting in the arrest of Paramjeet Singh, Director and Authorised Signatory of M/s API Plastic Recyclers Private Limited, Ludhiana, for orchestrating a massive ₹15.56 crore GST fraud involving the wrongful availment of fake Input Tax Credit on bogus transactions worth ₹85.4 crore.”
Detailing the investigation the Finance Minister said, “The accused firm was engaged in systematic and organized tax evasion. They availed fake Input Tax Credit on the basis of bogus invoices issued by non-existent and fraudulent firms across multiple states, entirely without the actual receipt of goods.”
Revealing further, the Excise and Taxation Minister said, “Our intelligence teams further established that many supplier firms involved in the transactions had already been cancelled suo moto, suspended, or found non-functional by the concerned GST authorities. The total fraud detected so far stands at ₹15.56 crore, and I must emphasise that this figure is likely to increase further as our investigation is still strictly in progress.”
Exposing the intricate web of deception, the Minister said, “I must commend our department’s detailed analysis of e-way bills and FASTag toll data. This analysis conclusively established that vehicles shown in transport documents were found at locations completely inconsistent with the declared movement of goods, proving that no actual transportation had taken place. Our investigation uncovered 407 such highly suspicious vehicle movements involving fake ITC of more than ₹2.65 crore.”
Cheema further highlighted the severity of the document forgery. He said, “Our probe also revealed a novel modus operandi involving fraudulent debit notes through which additional fake ITC amounting to approximately ₹5.79 crore was generated. These debit notes contained glaring irregularities wherein the taxable value and tax amount were shown as identical. This is impossible under GST law and clearly establishes the blatant fabrication of records for the generation of fake ITC. Further, during search proceedings conducted under Section 67 of the PGST/CGST Act, blank Goods Receipt books belonging to various transporters were recovered from the premises of the taxpayer, indicating the fabrication of transport documents to create a false trail of movement.”
Giving a stern message to tax evaders, Excise and Taxation Minister Cheema said, “In view of the substantial evidence collected during the investigation, the accused was arrested today, May 8, 2026, under Sections 69 and 132(1)(c) of the Punjab Goods and Services Tax Act, 2017. Because the amount of tax evasion vastly exceeds ₹5 crore, the offense is cognizable and non-bailable, and is punishable with imprisonment up to five years along with a fine. I want to firmly reiterate the State Tax Department’s commitment towards strict enforcement against fake billing rackets and GST frauds. Stringent action shall continue unabated against any persons involved in the generation and utilisation of fake ITC causing loss to the state revenue.”
