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    Recording reasons in writing is mandatory before blocking input tax credit under Rule 86-A; later explanations cannot cure the defect.
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VAT and Sales Tax

Seeking grant of anticipatory bail - bailable offence or not -...

Court Denies Anticipatory Bail in Tax Evasion Case, Highlights Need for Custodial Interrogation in MVAT and IPC Charges.

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VAT and Sales Tax April 22, 2024 Case Laws HC
Seeking grant of anticipatory bail - bailable offence or not - failure to make payment of tax - wilful attempt to evade any tax or payment of any tax - The applicant argued that the primary issue was tax evasion under MVAT, citing ongoing insolvency proceedings against a debtor as the reason for non-payment of taxes. - The High Court acknowledged the serious allegations of tax evasion and misappropriation, noting the substantial amount involved and the importance of custodial interrogation for a thorough investigation. - After analyzing relevant legal provisions and precedent cases, the Court concluded that the defendant could be prosecuted under both MVAT and IPC for the same set of facts. It cited Section 26 of the General Clauses Act to support this interpretation.

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Acts Income Tax