2016 (5) TMI 1156 - HC - Service Tax

Dismissal of Writ Petition against Summons in Tax Evasion Case Stresses Personal Presence for Interrogation

Sudhir Kumar Tripathi Versus The Commissioner of Central Excise & Service Tax

The court dismissed the writ petition challenging a summons issued by the respondent-authority, emphasizing the necessity of the petitioner's personal ... Whether summons issued by the respondent-authority is devoid of any merit and substance - right to be accompanied by the Lawyers - Petitioner is neither a Director nor a post holder in M/s Netshelter Marketing Limited - Respondent contended that there are several allegations against the petitioner. Several cheques vouchers of payment of service tax have been prepared. Huge amount of cenvat credit has been availed to the tune of ₹ 3.20 crores approximately and so far investigation which has been carried out shows involvement of this petitioner and other persons who are avoiding, coming to the respondent authority under one or other pretext. Held that:- no reason found to entertain this writ petition mainly for the various facts and reasons. Therefore, in view of those facts and reasons, this writ petition is hereby, dismissed with a cost of ₹ 1,00,000/( Rs. one lakhs only). The amount shall be deposited by this petitioner within a period of fifteen days from today before the Member Secretary, Jharkhand State Legal Services Authority, Nyaya Sadan, Doranda, Ranchi. - Decided against the petitioner Issues:Challenge to summons issued by respondent-authority.Analysis:The writ petition challenged a summons issued by the respondent-authority directing the petitioner to appear before the Superintendent (Prevention), Central Excise and Service Tax. The petitioner denied any association with M/s Netshelter Marketing Limited, against which allegations were made. The petitioner expressed willingness to appear before the authority along with legal representation.The respondent contended that a detailed counter affidavit highlighted the involvement of the petitioner in a significant tax evasion scheme allegedly operated by M/s Netshelter Marketing Limited. The investigation revealed substantial cenvat credit availed and alleged tax evasion amounting to crores. The respondent objected to the petitioner avoiding interrogation by high-ranking officers, emphasizing the crucial stage of the investigation.The court dismissed the writ petition, citing specific reasons. Firstly, the petitioner's authorization of legal representation did not suffice, as personal presence was mandated for interrogation. The court emphasized the necessity of the petitioner's presence for effective investigation, highlighting discrepancies in statements and evidence. The court noted the seriousness of the allegations, including fake challans and substantial tax evasion. The petition was dismissed with a cost of Rs. 1,00,000 to be deposited within fifteen days with the Jharkhand State Legal Services Authority. The Registrar General was directed to send a copy of the order to the Legal Services Authority.