GST offence provisions do not bar IPC prosecution where the same facts disclose distinct cognizable offences.

The article explains that offences under the U.P. Goods and Services Tax Act, 2017 do not automatically exclude prosecution under the Indian Penal Code where the same transaction also discloses distinct cognizable offences. Sections 69, 132, 134 and 135 govern arrest, punishment, cognizance and the presumption of culpable mental state for GST offences, while Section 131 and Section 26 of the General Clauses Act, 1897 preserve liability under other laws subject to the bar on double punishment for the same offence. On that basis, allegations of cheating and allied economic fraud could justify investigation under the Penal Code, and the FIR was not treated as liable to quashment.

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Issues: Whether the first information report alleging offences under the Indian Penal Code could be quashed on the ground that the alleged conduct was covered by the U.P. Goods and Services Tax Act, 2017 and that proceedings had to be confined to that Act.

Analysis: Sections 69, 132, 134 and 135 of the U.P. Goods and Services Tax Act, 2017 govern arrest, punishment, cognizance and presumption of culpable mental state for offences under that Act. They do not bar recourse to the Code of Criminal Procedure, 1973 or prosecution under the Indian Penal Code where the same transaction also discloses distinct cognizable offences under the Penal Code. Section 131 of the U.P. Goods and Services Tax Act, 2017 preserves liability to other punishment under any other law, and Section 26 of the General Clauses Act, 1897 permits prosecution under either enactment, subject only to the bar against double punishment for the same offence. The allegations in the FIR, read as a whole, prima facie disclosed cheating and allied cognizable offences, and the writ court found no legal basis to interdict investigation or to grant protection from arrest in a matter involving alleged economic fraud.

Conclusion: The first information report was held to be maintainable and not liable to be quashed, and no relief from arrest was granted to the petitioner.

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