AI Drafter 
TaxTMI 
TaxTMI 
2024 (10) TMI 788
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....ough Bangalore International Airport on 28.06.2023 he was apprehended by the Immigration officials. Finally, he appeared before the investigating agency on 29.06.2023, after destroying key evidences such as the sim card and phone used by him for communicating with his accomplices. Thereafter on issuance of summons, statement was recorded on 30.06.2023 under Goods and Service Tax Rules 2017 (in short ''GST") inter alia he admitted being involved in bill trading activities along with another accused Premanathan and he explained the entire process. The facts unearthed during the course of the investigation reveals that he was master mind in forming various dummy firms/entities, opening bank accounts in the name of the same and was issuing face invoices without supply of goods and services which was resulted in causing huge revenue loss to the Government Exchequer. The entities created and operated by Shri Premaraja has passed on fraudulent input tax credit of Rs. 175.88 Crore with corresponding taxable value of Rs. 973.64 crore without any actual supply of Goods and services. Thus, he has created a loss to the exchequer to the extent of Rs. 175.88 crore in violation of provisi....
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....re so as to exclude section 41 41A of Cr.P.C as per the circular by the Central Board to Indirect taxes and customs, Section 41A of Cr.P.C is applicable. Besides, already division bench of the High Court of Telangana, in the case of P.V.Raman Reddy Vs. Union of India, reported in 2022 (SCC) Online TS 472 clearly held that Section 41 and 41A of Cr.P.C is available to the person said to have committed offence under Section GST Act. In the instant case the respondent was not served with Section 41A notice. Therefore, the sessions judge rightly granted bail by holding that the procedure was not followed before arresting the accused. Hence, he prayed to dismiss this petition. 5. Heard both sides. 6. According to the petitioner, the respondent committed offence under Section 132(1)(b) and Section 132(1) of CGST Act in crime No.23 of 2023 on the file of the petitioner. During the course of the investigation it was found that the respondent is the master mind in forming various dummy firms by opening bank accounts in the name of the dummy entities by issuing fake invoices without supplying goods and services which was resulted in huge revenue loss to the Government exchequer. Accordi....
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....agencies complied the provisions of Section 69(iii) of CGST Act which is equivalent to the procedures in Section 41 and 41A of Cr.P.C. The learned special Public Prosecutor submitted that Section 70 of CGST is to take care and safeguard the accused interest like Section 41A of Cr.P.C. So there is no violation of the procedures while arresting the accused/respondent. 9. Section 69, 70 of CGST Act and Section 41 A of Cr.P.C extracted below: Section 69 - Power to arrest (1) Where the Commissioner has reasons to believe that a person has committed any offence specified in clause (a) or clause (b) or clause (c) or clause (d) of sub-section (1) of section 132 which is punishable under clause (i) or (ii) of sub-section (1), or sub-section (2) of the said section, he may, by order, authorise any officer of central tax to arrest such person. (2) Where a person is arrested under sub-section (1) for an offence specified under subsection (5) of section 132, the officer authorised to arrest the person shall inform such person of the grounds of arrest and produce him before a Magistrate within twenty-four hours. (3) Subject to the provisions of the....
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.... was issued to the respondent/accused calling upon him to appear for enquiry and also to return the statement on 24.06.2023 and the same was received by his wife/Meerakumari on 23.06.2023 but he was not appeared. Again another summon was issued to the respondent/accused for appearance but he was not appeared. Therefore, the search was made in his premise in the presence of his wife on 21.03.2023 along with other individual witnesses. On came to know about the search of the investigating agency, the respondent attempted to flee away from the country and he was apprehended by the immigration officials in the Bangalore Airport on 26.08.2023. In fact, he deliberately avoided to appear before the investigating agency hence, Look out circular by Home Affairs Ministry on 24.06.2023, was issued at the request of the investigating agency. Finally, he was appeared before the investigating agency on 29.06.2023 he gave a voluntary statement, wherein two questions posed on him as to why he was failed to appear before the authorities in spite of summons issued on 26.03.2023, for that he gave a reply that he was mis-leaded by the lawyers, the said statement recorded during the investigation. The ....