2023 (12) TMI 737

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....of the prosecution case is as follows:- Petitioner is the accused in the above crime registered based on the complaint of the 1st respondent under Section 132(1) of the Kerala State Goods and Service Act, 2017. The accused is a dealer under the GST Act. He has two offices, one at Pulimoodu Junction, Kottayam and the additional business place at Kochar Road, Pazhavangadi, Trivandrum. He is a wholesale distributor of mobile accessories and electronic items, which are taxable with 18% GST. It is alleged that he is supplying goods without issuing invoices, evading the tax payment due from 2018 onwards. The accused is involved in tax evasion estimated at 6.14 crores. A raid was conducted in the office of the accused on 09.11.2023, and he was arr....

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....his regard. It is also argued that custody of the petitioner was given for five days. After that, permission has been granted to interrogate the petitioner in jail for four days. Under such circumstances, since the investigation has progressed, there is no necessity for continued detention. He also argues that the entire hard copies of the documents found on the computer were already taken. 6. The learned Special Government Pleader, Taxes, Sri. Mohamed Rafiq, opposing the bail application, filed a report with the following contentions. An extensive investigation in the field of mobile phone accessories and electronics in the search conducted has unearthed a significant case of tax evasion by the accused herein being the proprietor of M/s. ....

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....eges that the petitioner was supplying goods without issuing invoices to his customers and was evading tax due to the Government. The transaction by the petitioner was with an intention to suppress his actual outward taxable supplies and thus was involved in large-scale tax evasion. Permission for the search was sought under Section 67(2) of the Act at the principal place of business and the additional place granted by the Joint Commissioner on 20.10.2023. In the search that followed, business transaction books of 480 pages from the business places of Lakshmi Mobile Accessories at Kottayam were seized. On verification, it was found that the petitioner had suppressed a total turnover of Rs.34,15,42,040/- for the years 2021-2022, 2022-2023 an....

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....ing of the input tax credit by using such invoices or bills are made offences under clauses (b) and (c) of sub-section (1) of Section 132 of the CGST Act. The prosecution for these offences does not depend upon the completion of the assessment. The alternate argument that the petitioner can compound the offence under the CGST Act both before and after the institution of the prosecution also cannot be accepted as there is nothing on record to show that the petitioner has offered to compound the offence or has paid the tax payable on such compounding or has admitted the liability. Therefore, the argument that arrest can only be after the completion of the assessment has no legs to stand. 10. Of course, the power to arrest is one, and the exe....