Cheema emphasized that the AAP-led Punjab government is committed to a zero-tolerance policy against tax evasion and staff indiscipline.
Chandigarh: Punjab Finance, Excise and Taxation Minister Adv Harpal Singh Cheema on Thursday announced important actions by the state government to protect tax revenue and enforce discipline among its employees.
The minister said a Ludhiana-based businessman has been arrested in a GST fraud case involving about ₹9 crore. In the same announcement, he said an Excise and Taxation Inspector has been dismissed from government service for being absent from duty for a long period without permission.
GST Fraud Case
According to the minister, the State Intelligence and Preventive Unit (SIPU), Ludhiana carried out an operation that led to the arrest of Rohit Gupta, the proprietor of M/s Maa Steel, Ludhiana. He was detained by the Taxation Department in connection with a case of fake invoicing and illegal tax claims.
Officials said the company issued false invoices for HR/CR coils and strips without supplying any real goods. Through these fake bills, the firm managed to pass on Input Tax Credit (ITC) worth more than ₹9 crore to other businesses. This caused a loss to the state treasury. During searches, authorities also found that the actual physical stock at the company did not match the records in its books.
Cheema added that the investigation is expanding. Officials are now examining several businesses in the cycle parts and spare parts sector suspected of improper claims, including export benefits and duty refunds. These are common ways some networks attempt to falsely reduce tax liability.
While this specific Rs 9 crore case has been reported by local news sources, larger GST fraud investigations in Punjab and neighbouring regions have uncovered bogus billing and fake ITC scams worth much larger sums in recent years, showing the broader context of tax enforcement efforts.
Disciplinary Action Against Government Staff
On the administrative side, Cheema said the Punjab Government has dismissed an Excise and Taxation Inspector for prolonged unauthorized absence from work. This decision was taken under the Punjab Civil Services (Punishment and Appeal) Rules, 1970 after due procedure.
He also noted that the government has already terminated four other employees for similar misconduct and is progressing disciplinary proceedings against others, including another inspector and a clerk for prolonged absence. This is part of an ongoing push to ensure accountability among public servants.
Cheema emphasized that the AAP-led Punjab government is committed to a zero-tolerance policy against tax evasion and staff indiscipline. He said the state will continue rigorous checks on tax fraud and enforce strict actions against those who break rules, whether in business or within government departments.
