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Jeweller's tax evasion caught after complaint on false bills 
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Joined: Tue Nov 27, 2012 6:21 am
Posts: 13
Hi all,

I have been following messages/posts in this forum from quite some time and have learned a lot. I thought to share a success story with all members.

A dowry harassment case under IPC 498a and 406 was filed last year on my entire family. Girl's side submitted false jewellery bills to the police, when my family members were arrested, so that they can get the custody of my family members extended under the garb of streedhan recovery.

These jewellery bills were prepared by girl's cousin, who is a jeweler himself. He didnt mention any VAT on those bills. Moreover, many irregularities are there on these bills, as these were prepared in hurry and with mal-intention. Police didn't investigate those bills at all and shared there incapability in investigating an economic offence.

We sent a complaint to Commercial Tax Department for the investigation of these bills and after consistent follow up and couple of RTI's, we received the information. The anti tax evasion team nailed down the jeweler and found an offence under section 25(1), 55 and 61 of VAT act 2005 on him. During the audit of his documents for the last three years, anti tax evasion team found no entries in his books on the sale of jewellery worth Rs 50 Lakhs. Jeweller accepted his offence and paid the required tax with interest and penalty.

I have few queries and appreciate comments from the experts in this forum
a. Would this story be of interest for media and is this a good time to share this story on the subject or as a success under RTI. If yes, I will be grateful if you could share contacts of the journalists, who will be interested in such story. Your inputs/ideas are welcome.

b. The other query is on the authenticity of the bills. Now since he has paid taxes on those jewellery bills after 3 years from the date of cash memo and post the complaint, would that mean that the bills can be treated genuine by the court?


Mon May 06, 2013 6:45 pm
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Joined: Mon Dec 24, 2012 12:11 am
Posts: 959
Yes ur story is useful as every drop of water counts in this country...

Regards,
Phasgaya73


Mon May 06, 2013 7:53 pm
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Joined: Sat Jul 28, 2012 5:15 pm
Posts: 372
try posting your story on SIFF yahoo group someone may try to cover it


Tue May 07, 2013 3:30 am
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Joined: Mon Sep 13, 2010 2:30 pm
Posts: 4740
This is a big success story. Highlight it to the maximum in print n electronic media.
Post it at rtiindia.org. They r nice, helpful ppl


Tue May 07, 2013 4:19 am
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Joined: Tue Oct 02, 2012 12:04 pm
Posts: 299
utisthat wrote:
b. The other query is on the authenticity of the bills. Now since he has paid taxes on those jewellery bills after 3 years from the date of cash memo and post the complaint, would that mean that the bills can be treated genuine by the court?


There are two things you can do

1. Still argue in court that these bills are fake.
2. Even if these bills will be treated as genuine by court that does not mean you have that jewlerry with you..

so in both the case you should not worry.. you lawyer will take care of that.


Tue May 07, 2013 7:40 am
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Joined: Tue Apr 19, 2011 12:00 pm
Posts: 754
Put in on blogs and facebook and let it go to every corner of the world. I would suggest you put your RTI application format as well for fellow fighter to help.


Tue May 07, 2013 12:21 pm
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Joined: Tue Nov 27, 2012 6:21 am
Posts: 13
Thanks Phasgaya73, Wantyouback, galsober and harassed.by.inlaws for your inputs.

Thanks 498AAmritsar. agree with your comments. To strengthen the argument, I am just wondering if there is any further information which can be sought from Commercial Tax department specifically related to these fake bills?


Tue May 07, 2013 7:53 pm
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Joined: Tue Oct 02, 2012 12:04 pm
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utisthat wrote:
To strengthen the argument, I am just wondering if there is any further information which can be sought from Commercial Tax department specifically related to these fake bills?


See if the Jewller agreed that he has not paid VAT on these items and now paid the VAT it is his problem nothing to do with you..

Now check and do the postmartem of those bills.. extract the VAt return of all the past years of that Jewller.. you will find clue that these bills were not issued from original bill book which is used for VAT returns..


Wed May 08, 2013 7:16 am
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Joined: Tue Nov 27, 2012 6:21 am
Posts: 13
Thanks.
There are many irregularities in the bills. Two bills have consecutive numbers, but the date on these bills has a difference of two months. Which means that he didnt issue any bills between these two dates.

In his statement to police he mentioned that he does not collect VAT from his customers. As per an insider information, he was not paying any tax to the Commercial Tax department since last 3-4 years.


Wed May 08, 2013 7:18 pm
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Joined: Sat Jul 28, 2012 5:15 pm
Posts: 372
Hey,
Any updates?


Thu May 23, 2013 3:02 pm
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Joined: Mon Feb 06, 2012 8:24 pm
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mate is ur case in delhi ? how much time did it take to get info about the bills from the commercial taxes department ? why dont u ask the commercial taxes people as to what all items were there in the said bill, the total amount and the final tax paid on the said two bills ?

please post details, as I have also recently filed a complaint for jewelery bills with the commercial taxes department.


Fri Jun 28, 2013 4:45 am
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Joined: Sat Feb 25, 2012 6:34 am
Posts: 62
Actually, what happened does not make a lot of sense to me.

Take this example which is close enough. Girl's father claims, say, X lakh cash in dowry and brings a bunch of people as false witnesses for the alleged transaction. Not declared for income tax, etc. So we do the TEP. Now he pays tax+penalty, knowing he can ask much more via settlement/maintenance, and we still have to face trial for this? (of course, in reality, there will be other incidents too). This seems to be a nice investment. Choose X so that if caught, you can afford the tax+penalty and extort 10x that amount from innocent people.

I think we should strongly fight against this and file 420 or extortion counter cases (even forgery if fake jewellery bills), because in addition to the Govt's loss, we are victims too. Thoughts?

It is odd that fraud involving the same money is civil in one case and criminal in another. How is it purely a matter between jeweller and Govt?


Fri Jun 28, 2013 5:30 am
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Joined: Mon Feb 06, 2012 8:24 pm
Posts: 453
anand is right, there must be a way to counter it..


Fri Jun 28, 2013 8:41 am
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Joined: Wed Mar 26, 2008 9:03 am
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anandrn,
Let us look at this like this.
You saw someone committing a robbery and the robber when fleeing the scene of crime attacks you and leaves you injured but now you have his picture and scene recorded.
You call the police ;police takes you to the hospital for treatment and you are discharged from there after a while and on your submission of evidence arrest the robber and prosecutes him on the basis of your evidence .
Now for you there was a first aid or medical treatment for your injury but robber is never made to pay you compensation.
same way when TEP hits OUTlaws pay and you reported the case though there are provisions in IT act to reward the informer which you can get if you go through the procedure carefully and follow it.
As you cannot file any case against the robber similarly you cannot do anything about inlaws being prosecuted and you get no reprieve.
Pls know that are provisions in I Tax laws to reward the informer when his information brings in a haul of wealth but you need to carefully study the rules and then file a TEP or not file a TEP


Fri Jun 28, 2013 11:05 am
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Joined: Sat Feb 25, 2012 6:34 am
Posts: 62
I think it is a slightly different scenario, poppinder-ji. How I look at it:

Robber steals item A (tax evasion or fictitious money - victim is the govt)
Years later, Robber claims A was stolen from him by someone else say X (that money taken as dowry)
If robber files a stolen complaint, will police book X and let the robber go?

Actually, no, in our example, the TEP should kick in. The tragedy is the same money transaction is looked upon differently. The first is a civil offence, the second, if true, is a criminal offence. If false, there is still trial. Hence, there should be mandates that the income source should be verified before showing an amount as dowry (one Delhi HC said so, but rarely followed).

Now, consider this, I have a huge amount shown as dowry paid in cash. Goes way beyond IT limits (6 years). Several false witnesses. Of course, I didn't take that money. Why should I go through trial without any documentary evidence?

The second difference: limitation of 6 years for IT; no limit for dowry. So, in the above example, robber's theft will go away scot-free.

Even in your example, there is a criminal case made out against the robber for causing injury. A tort case will also stand, I guess, but will be a waste of money.


Sat Jun 29, 2013 3:48 pm
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Joined: Mon Feb 06, 2012 8:24 pm
Posts: 453
got a reply from the sales tax guys today, they wrote that since the jeweler is not registered with them under sales tax, they are unable to furnish any information. i knew these government departments will not work properly....

what to do next folks ?


Mon Jul 08, 2013 9:59 am
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Joined: Tue Oct 02, 2012 12:04 pm
Posts: 299
Please let me know..

1. Amount of Jwellery mentioned on Bills.

2. Which state do you fall?


Mon Jul 08, 2013 11:34 am
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Joined: Mon Feb 06, 2012 8:24 pm
Posts: 453
bro am from delhi, but the jeweler is from bulandshahar (uttar pradesh).

the bills state that 750 gms gold was given to the jeweler, and in return blah blah items were taken, the making charges etc have also been mentioned and one bill is for 30k and the other has 2 kg silver items and the bill is for 40k.

apart from the total, there is no mention of vat paid, sales tax paid etc. it is just a rough estimate, not a bill.. it does not even have the jeweler's stamp, or the name of my ex FIL or wife...


Mon Jul 08, 2013 2:27 pm
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Joined: Mon Sep 13, 2010 2:30 pm
Posts: 4740
Fight on grounds that
ITS A FAKE BILL
GIVEN BY SOME FAKE JEWELLAR WHO IS NOT REGISTERED WITH SALES TAX DEPTT!

Make a complaint against that jewellar akso that he is releasing bills & running shop violating sale-tax rules!


Tue Jul 09, 2013 2:21 pm
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Joined: Mon Feb 06, 2012 8:24 pm
Posts: 453
thanks dear gal, i spoke to the sales tax people, they told me that there is a special investigation branch where i should file a separate complaint and then follow up on the action after some time. i have done the needful. lets see if they verify the bills and get the jeweler registered.

and yes, fighting it out on the ground that the jeweler is not even registered with the sales tax department is a great point, and moreover, they are mere estimates with no mention on the tax paid, they dont even have the name of my bitch or ex FIL on it :D


Tue Jul 09, 2013 8:38 pm
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Joined: Thu Jan 16, 2014 4:51 pm
Posts: 53
@ coolguitarist,Utisthat, and other members,
In my case also, the jeweller has exchanged old jewellry for fresh jewellry. The differance is that he has given pacca bill. He has mentioned on bill :-recd. old jewellry 800gram, prepared fresh ornaments 830 gram, cost of gold,vat, labour has been charged on diff. of 30grams only. Nothing has been charged on 800grams i. e. no vat/ labor etc.
What I mean to ask here is that you might have asked from sales tax deptt. (as is apparent from the thread) if exchange of old gold ornaments with fresh ones without paying any vat / labor etc. is in order as per vat laws. In practce if we go to a jeweller with old gold for some new ornament, he deduct 10% from old gold then charges labor/ vat on new ornament and then issues pacca bill.
Pl. post your comments on above. Thanx.


Tue Jun 10, 2014 4:47 am
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