Delinquent Firms Avoiding Rs. 940 Crores Tax, Court Urges CGST & SGST Collaboration for Action The District/Sessions Court Patiala House Courts highlighted the lack of action against delinquent firms involved in a tax evasion case of Rs. 940 crores, ...
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The District/Sessions Court Patiala House Courts highlighted the lack of action against delinquent firms involved in a tax evasion case of Rs. 940 crores, with a blame game observed between CGST and SGST authorities. Despite SGST initiating actions against some firms, CGST failed to act against the remaining firms. The court emphasized the need for coordinated efforts, directing the Commissioner of SGST to detail actions taken and serve the court's order for prompt action. The court scheduled the next hearing for further proceedings, stressing the importance of effective collaboration between CGST and SGST authorities to address the tax evasion issue.
Issues: Lack of action against delinquent firms, blame game between CGST and SGST, tax evasion of Rs. 940 crores, absence of SGST representation, filing of replies by different CGST Commissionrates.
The judgment delivered by District/Sessions Court Patiala House Courts highlighted the concerning lack of action against delinquent firms involved in a tax evasion case amounting to Rs. 940 crores. The court observed a blame game between the Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) authorities. Despite SGST's claim of initiating actions against some firms and employees, CGST failed to act against the remaining 202 out of 486 firms. The court expressed disappointment over the sorry state of affairs revealed in the replies filed by CGST, indicating a lack of coordination and communication between the two tax authorities.
Moreover, the absence of SGST representation during the proceedings was noted with regret. The court emphasized the need for appropriate actions against the delinquent firms instead of engaging in blame-shifting. The court directed the Commissioner of SGST to file an affidavit detailing the actions taken by SGST in the matter. Additionally, a copy of the court's order was to be served to the Commissioner of SGST through various channels for prompt action and awareness.
Furthermore, the court acknowledged the submission by the Senior Public Prosecutor (SPP) representing CGST regarding the filing of a reply on behalf of the Chairperson, Central Board of Indirect Taxes and Customs (CBIC), within four working days. The court scheduled the next hearing for filing replies on behalf of the Chairperson, CBIC, and Commissioner, SGST, on 05.10.2021 for further proceedings in the case. The judgment underscored the necessity for both CGST and SGST authorities to collaborate effectively and take decisive actions to address the significant tax evasion issue at hand.
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