Supplies to cement sector: RTO Islamabad detects mega scam of flying invoices

The Regional Tax Office (RTO), Islamabad has detected a mega scam of fake/flying invoices used for claiming credit adjustments by the persons making supply to cement sector, causing massive revenue loss to the exchequer.

During the investigations conducted by the Intelligence, Investigation and Prosecution Cell, Sher Afghan, CEO of M/s Flaming Gems Pakistan (Pvt) Ltd, dealing in coal was found involved in claiming huge adjustment against import of fruits and vegetables.

Initial investigation revealed that accused fraudulently adjusted input tax amounting Rs33,071,737 against imports of fruits and vegetables. The Chief Commissioner, RTO Islamabad Dr Shamsul Hadi and Commissioner Corporate Zone, Imran Latif Minhas directed the I&P Cell to initiate criminal proceedings against the directors of the company along with connivers and beneficiaries.

Therefore, FIR No 01/2020 lodged against Sher Afghan, Aamir Sohail and others. Farrukh Amir Sial, deputy commissioner, along with team comprising Harris Iqbal and Arafat Faiz Rasool (audit officers) raided the head office of the company, and arrested the main accused, Sher Afghan.

The accused was presented before the Special Judge, Customs, Taxation and Anti-Smuggling, Rawalpindi and the court granted physical remand of the accused. Investigations are underway and more arrests are expected in the mega scam.