TaxTMI 
TaxTMI 
2022 (3) TMI 1046
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....e filed connected CRM-M-44640-2021 titled 'Manjit Singh and others Vs. Union of India and others' in which a direction is sought to hand over the investigation of the aforesaid complaint titled as 'Inspector (Preventive) CGST Commissionerate, Ludhiana Vs. Baljinder Singh' to some other office; like Central Bureau of Investigation and to provide protection to the petitioners. Counsel for the petitioners submit that the petitioners are whistle blowers as they have made complaints against the officers to the various departments of Central Bureau of Investigation and Central Vigilance Commission and also filed a Criminal Writ Petition before this Court to take action on their complaints. Counsel for the petitioners further submit that, in fact, the petitioners have brought to the fore of the misdeed of one Baljinder Singh against whom Central Goods and Services Tax Department has filed a criminal complaint under Section 132 (1)(b), (c), (f) and (i) of CGST Act, 2017 and punishable under Section 132 (1)(i) of Central Goods and Services Tax Act, 2017 and corresponding provisions of Punjab State Goods and Service Act, 2017 both read with Section 20(xv) of the Integrated Goods and Se....
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....missionerate, Ludhiana on 9.3.2022 and submitted their letters as per directions of this Court claiming to be whistle blowers in the bogus billing case of Baljinder Singh. They were issued summons under Section 70 of the CGST Act, 2017 and both of them confessed that, they in connivance with Baljinder Singh are receiving benefits on the basis of bogus bills without supply of any material in the firm owned by them, namely M/s R.N.G. Traders, M/s Raj Enterprises, M/s Deep Enterprises and M/s Diksha Yarn Traders are thus, availing and passing fake ITC. It is further stated that there is no intentional lapse on the part of the department and, in fact, the petitioners, in a calculated and noble method, have started filing the complaints against Baljinder Singh and the officials of the department by posing themselves as a whistle blowers though they themselves are partners with Baljinder Singh in different firms. Both the petitioners are hand in glove with the master mind Baljinder Singh @ Bunty of bogus billing racket as both the petitioners are involved in banking transactions for him and on behalf of the other firms. It is further stated that petitioner No.1-Manjit Kumar @ Manjit S....
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....-Evasion), CGST Commissionerate, Ludhiana wherein, inter alias, both confessed to have connived with Baljinder Singh in receipt and issuance of bogus bills without any materials in the firms owned by him, namely, M/s RNG Traders and M/s Raj Enterprises and thus availing and passing on of fake ITC. 41. From the foregoing, the investigations conducted by the department can broadly be summarised as under :- In the present scam of bogus billing eight persons have been arrested by the CGST Department so far out of which seven persons have been arrested after Baljinder Singh was arrested on 25.3.2021, detailed as below :- Sr.No.. Name of Person arrested Related firms Date of arrest 01. Baljinder Singh @ Bunty Prop. of M.B. Enterprises and Director in Japji Knitwears Pvt. Limited 25.3.2021 02. Vishal Singh Prop. of Shri Giriraj Trading Co. 25.3.2021 03. Gurtej Singh Prop. of R.K. Fabrics 31.3.2021 04. Sagar Prop. of S.D. Fabrics 31.3.2021 05. Mohan Lal Verma Director in Lavyansh Textiles Pvt. Ltd. and Prop. of Emm Ess Fabrics 14.11.2021 06. Mukesh Verma Director in Lavyansh Textiles Pvt. Ltd....
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.... GST Department. For completing the investigation, the above mentioned examinations are usually done which takes a long time as most of the investigation is dependent on the persons/documents which are outside the control of GST Department, therefore, through summons, letters, reminders they are pursued. (ii) In the instant case as the complete evidences were not available with the department in respect of the 20 firms, controlled and operated by Baljinder Singh alias Bunty in connivance with various persons on whose name these firms were created, therefore, the investigation could not be completed within 60 days of the arrest of Baljinder Singh alias Bunty and therefore, the complaint/prosecution against him could not be filed by the GST Department and hence, Baljinder Singh alias Bunty was able to secure a default bail. (iii) Further, it is submitted that there is no intentional lapse on the part of department in so far s the non-filing of prosecution within sixty days of arrest of the first the accused is concerned. IN the instant case, sincere efforts were made to complete the investigation and file the complaint within sixty days, but the following difficulti....
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.... been dealt with. (i) Above all, for past few months there have been COVID-19 pandemic which also prevented regular functioning of the offices. (j) Further, shortage of staff at executive level also hampered the department from completing the investigation and filing the complaint within sixty days. (iv) Further, this office has also filed a complaint dated 7.12.2021 under Section 174 and 175 of the IPC in the Court of Hon'ble Chief Judicial Magistrate, Ludhiana against the Proprietors/Partners/Directors involved in the instant case who had not complied to the summons issued by this office. II. Further, submissions of the petitioners that they are actually the whistle blowers to the misdeed of Baljinder Singh, are vehemently denied. All the three petitioners in CRM-M-44640-2021, namely, Manjit Kumar, Hardeep Singh and Gurbakhash Singh have created bogus firms in connivance with Baljinder Singh @ Bunty and have availed and passed on Input Tax Credit under CGST law fraudulently without movement of any goods as detailed in Table-12 below :- TABLE 12 Name of person Name of firm M/s ITC availed ITC passed on Manjit Kumar Raj Enterprises....