Minister Hankhalian's daughter owned agency on multi-crore CGST fraud scam
Source: IT News
Imphal, December 08 2019:
A multi-crore CGST fraud scam has come under scrutiny which may lead to eruption of the discrepancies in the financial dealings of state Veterinary and Animal Husbandry Department to an alleged CGST defaulting agency.
The alleged defaulter is an agency owned by Carolyn Lammuanching daughter of Veterinary and Animal Husbandry Minister V Hangkhalian.
How the huge amount of financial consideration went to the agency owned by the concerned Minister's daughter is not known in a BJP-led government which is known for its tirade against family intervention in the affairs of the government.
The Deputy Commissioner (Special Intelligence Unit), CGST Division, Imphal under the Department of Revenue, Ministry of Finance served a notice on October 29, 2019 to M/s Muanching Agency also quoting the name of Carolyn Lammuanching for intimating discrepancies in the return after scrutiny for tax period February, 2019 of Financial Year 2018-19 .
The notice said, "on scrutiny of GSTR-7, it is found that you(the agency) have received consideration amounting to Rs 12,96,83,125 from the Directorate of Veterinary and Animal Husbandry Services, Imphal in the month of February, 2019 .
However, on further scrutiny of your(the agency's) GSTR-3B return of the corresponding month it was noticed that you have declared outward taxable supplies (other than zero rated, nil rated and exempted) as Rs 55,66,795 only resulting difference of Rs 12,41,46,330 between the TDS and GSTR" .
The agency was directed to explain the reasons for the aforesaid discrepancies by November 8 of this year failing which legal proceedings will be initiated without further reference to the agency.
Search result based on GSTIN/UIN: 14AFPL8833K1Z4 gives the legal name of business as Carolyn Lannuanching and trade name as M/S Muanching Agency at Centre Jurisdiction Churachandpur Range and State Jurisdiction Zone-10, Churachandpur and Pherzawl Districts(Jurisdiction office) .
Meanwhile, a certification was issued by the State Veterinary and Animal Husbandry Directorate on November 6 of this year signed by Joint Director(Planning) Ch.Nandakishore Singh stating that a sum of Rs.12,96,83,125 had never been transferred in favour of M/S Muanching Agency, Churachandpur by the Department of Veterinary and Animal Husbandry, Manipur during the tax period February, 2019 .
More interestingly on what may open up the under-covered discrepancy in GSTR-7 in the month of February, 2019 the same Joint Director wrote a letter to the Deputy Commissioner(Special Intelligence Unit), Central Division, Imphal referring to that office letter of even No.dt 13/11/2019 regarding the above subject and requested to extend the date of furnishing the required as desired by the Deputy Commissioner's office vide letter No IV(10)07/O&A/CL/CGST/DIV-IMP/2019-20 dt 8/11/2019 till December 10 of this year on the ground that the Veterinary and Animal Husbandry Department and officers concerned are fully engaged for review and evaluation study to be conducted by Centre for Good Governance, Hyderabad on NEC Schemes, NERSDS and NER Vision 2020 from November 28 to December 4 this year.
However, the letter mentioned nothing about why the Department could not furnish the documents sought in the ample time gap after receiving the letter and before engagement of its officials for the review and evaluation study.
The concerns of the Veterinary and Animal Husbandry Department and its clarifications need to be authenticated through fully furnishing the details of all bank account statements given to the agency from the department and the CGST Division, Imphal also needs to thoroughly investigate into the discrepancies in the financial considerations in the interest of clean governance.
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