Thane, February 11 Authorities of the Central Goods and Services Tax (CGST) in Thane, Maharashtra, have cracked down on a racket allegedly involved in fraudulently claiming input tax credit (ITC) of Rs 172 crore, and arrested the owner of a chemical company for the scam, officials said on Wednesday. The action was taken by the anti-evasion wing of the CGST and Central Excise of the Thane Commissionerate. In its investigation, the commissionerate found that Bhaumik Girishbhai Gandhi, director of Florida Solvent Private Ltd, was the mastermind who fraudulently availed and passed ineligible ITC without the actual receipt and supply of goods worth Rs 952 crore. "Based on documents and a detailed investigation, it was found that the accused orchestrated the fraudulent claiming and passing of fake ITC through non-existent and cancelled firms," the release stated. Multiple searches were conducted at the premises of the company's suppliers, which revealed that several of the supplier firms were either non-existent or had cancelled their registrations, indicating that the transactions were bogus, it said. Further searches at Gandhi's residential premises led to the recovery of incriminating documents and evidence pointing to the fraud without the actual supply of goods. Gandhi, in his voluntary statement, admitted to masterminding the fraud, earning commissions and directly benefiting from the illegal proceeds, the release said. He was arrested on February 10 and produced before a local court, which remanded him in judicial custody for 14 days.