TaxTMI 
TaxTMI 
2020 (7) TMI 26
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....hereby it has kept the provisional attachment orders dated 05th March, 2020 as well as corrigendum dated 01st June, 2020 alive after specifying that the reason for attachment was that proceeding under Section 67 of Central Goods and Service Tax Act (hereinafter referred to as "CGST Act") was pending against the petitioner. However, the respondent No.1 accepted the fact that it should not conduct parallel investigation and accordingly, the respondent No.1 handed over its investigation to Directorate General of Goods and Services Tax Intelligence (for short "DGGI") who had been investigating the matter since 05th December, 2018. The relevant portion of the impugned order reads as under:- "1.3 Searches were also conducted in the regis....
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.... 17,58,035 7,80,67,316 1,60,09,872 9,40,77,188 1.4 All 8 premises were either found to be non-existent and in case the addresses were found, they were not being used by the registered suppliers of M/s WMSPL. Hence, it is evidence that the above mentioned 8 suppliers were created solely for the purpose of passing on fake ITC. 1.5 Further, Shri Gulzar, Manager (IR & Compliance) at M/s Watermelon Management Services Private Limited in his statement recorded on 04.03.2020 under Section 70 of the CGST Act, 2017 stated that the company had never received any services from the above mentioned firms. 1.6 During investigation it was also found that another company by the n....
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.... by the department wherein they have been informed that the investigation has been launched under Section 67 and not Section 74 of the CGST Act, 2017. xxx xxx xxx 4.1 The bank accounts of the company were provisionally attached on 05.03.2020 under Section 83 of the CGST Act, 2017 to safeguard Government revenue. This was done on the basic of ample evidence that the company h ad fraudulently availed ITC on the basis of fake input invoices and that ITC had been used to discharge their tax liability. Section 83 (1) reads as follows: Where during the pendency of any proceedings under section 62 or section 63 or section 64 or section 67 or section 73 or section 74, the....
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....tigation has already been handed over to DGGI by this office and that further investigation in the present case will be conducted by DGGI. 4.4. It is pertinent to note here that in a recent investigation initiated by this office against M/s Orion Security Solutions Private Limited for wrong availment/mis-utilization of ITC and tax collected but not deposited, Bank accounts of the company were provisionally attached by this office during the course of investigation under Section 83 of CGST Act, 2017. M/s Orion Security Solutions Private Limited filed the writ petition for de freezing of provisionally attached Bank accounts. The Hon'ble Delhi High Court via order dated 16.03.2020 disposed the said writ petition and held that the acco....
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....-19. He also states that the petitioner has not provided any evidence of genuineness of Input Tax Credit (ITC) availed by it and/or eight other companies. He further states that the Directors of the petitioner have failed to comply with summons issued to them. 5. On the last date of hearing, we had directed officers of the DGGI and the Commissioner of CGST, Delhi (East) to appear before this Court. 6. Today, both the officers who appeared in person via video link in unison state that their investigations show that prima facie there has been wrongful availment of ITC by the petitioner. Officer from the DGGI office states that though fifteen summons had been issued to the Director of the petitioner, yet he had appeared only on three occ....