TaxTMI 
TaxTMI 
2022 (7) TMI 803
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....ral Goods and Services Tax Act, 2017 (here-in-after referred to as CGST Act). The respondent department allegedly gathered information that M/s. Saba Chemicals Wood Products, located at Yamuna Nagar, Haryana for which wife of the applicant is proprietor and applicant is looking after the affairs of the firms. Allegedly the applicants firm was major recipient manufacturer unit which was procuring agricultural Urea from Shri Manoj Kumar in cash and using the same to manufacture and clear resin without payment of GST. Till date the assessment proceedings has not been completed and thus arrest of the applicant is pre mature as GST department cannot fixed liability of the company. 3. That M/s Saba Chemicals Wood Products, located at Khajuri Road, Yamunanagar, Haryana is proprietorship firm engaged in the business of manufacture and sale of plywood and other ancillary wood products since last many years. The firm is a honest contributor towards the government exchequer by filing regular tax returns and paying applicable taxes. Allegedly some information was received by officers of Directorate General of GST Intelligence, Gurugram Zonal Unit that one Sh. Manoj Kumar, Proprietor of M/s Ha....
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....f the GST Act alleged by the Respondent Departmnent are Compoundable Offences under Section 138 of the GST Act, 2017. It is submitted that the applicant has never been charged for any offence under GST Act 2017 before the present allegation of GST evasion. It is submitted that the CGST authorities have failed to provide any calculation or any form of ascertainment of the alleged GST evasion. In complete disregard of Section 69, GST Act, the GST Authorities have also failed to provide the 'reasons to believe' and 'grounds of arrest. It is submitted that the Respondent Department have committed deliberate errors in valuation of the purported tax liability and malafidely increased the total tax liability of M/s Saba Chemicals Wood Products solely on the basis of some document procured from search at the premises of one Sh. Manoj Kumar and based on the own surmises of the Respondent Department out of the forced statement recorded in order to bring the alleged acts under the ambit of Section 132 (5) of the Act.That the GST Authorities have committed mischief in valuation of the tax liability of M/s Saba Chemicals Wood Products with sole motive of taking the alleged tax evasi....
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....such there is no requirement to keep applicant in custody. The procedure adopted for the arrest without completion of assessment proceedings. Case contrary to establish law. The applicant has permanent abode and there are no chances of his flee from justice. The offence under which applicant is booked is punishable with five years imprisonment and is Magistrate triable. The applicant is in custody since last more than 70 days. Ld. counsel also placed reliance on written arguments wherein it was submitted that main accused Mr. Manoj Kumar has already been granted bail by the ld. Sessions Court Yamuna Nagar on 22.6.2022 and on parity, the applicant deserves similar treatment. In support of his averments ld. Counsel for the applicant placed reliance on following authorities : * ● M. Jayachandran Alloys Pvt. Ltd. Vs. Superintendent of GST and Central Excise, WP 5501 of 2019, decided by Hon'ble Madras High Court. * ● PV Ramana Reddy and others vs. Union of India, Ministry of Finance, Dept. of Revenue, WP no. 4764/2019 decided by Hon'ble High Court of State of Telangana. * ● N. Nagendra Rao and Co. Vs. State of AP, 1994 AIR 2663 decided by Hon'ble Supreme Court o....
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....chequer. It is alleged that on the basis of the search carried out at various premises and also as per the statement of the accused, It was gathered that the Manoj Kumar was involved in clandestine procurement and supply of agriculture grade urea. The statement of the Manoj Kumar was recorded on 25.04.2022 wherein with regard to the various cash sale registers/documents found during search, he stated that the said documents were related to the details of Agriculture Grade Urea bags of 45 kilogram sold to various plywood manufactures by him. That some of these entries related to M/s Aggarwal Industries, M/s Saba Chemicals Wood Products etc. Payments were made by the user manufacturer in the account of the shopkeepers (by depositing cash in their accounts) or directly on the spot. He used to get commission of around Rs.20 on each bag in the form of cash. He purchased around 6000 bags each weighing 45 kilogram every month from these persons. He also informed that the user factory contacted him telephonically for providing the agriculture grade urea, he provided the agriculture grade urea and on the basis of availability, he provided the same to them frequently, almost on daily basis.....