2025 (10) TMI 1121

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....r the offence punishable under Section 132 sub-section (1) clause (b)(c) of SGST Act, 2017. 2. The case of the prosecution, in brief, is that the applicant is the Director of M/s Mahavir Moulds India Private Limited and is allegedly involved in the management, operations, and financial transactions of the following seven companies, namely-M/s Jai Bajrang Loha Private Limited, M/s Shree Pashupati Nath Loha & Steel Traders Private Limited, M/s Ambitious Procon Private Limited, M/s Karma Hireup Private Limited, M/s Morvi Nandan Healthcare Private Limited, M/s Nairson Multiventures Private Limited, and M/s NPR Commercials Private Limited. It is alleged that these entities have claimed and availed ineligible or fake Input Tax Credit (ITC) amo....

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....GST Intelligence, 2024:BHC-NAG: 1006 held that the Supreme Court's guidelines apply to arrests by GST authorities. 4. It is further argued that all offences under the SGST Act, 2017 are compoundable under Section 138, and the object of the Act is primarily economic, aimed at recovery of revenue, not punitive incarceration. The Hon'ble Calcutta High Court in Sanjay Kumar Bhuwalka v. Union of India, CRM 3327/2018 and the Hon'ble High Court of Andhra Pradesh in M/s Sree Constructions v. Assistant Commissioner (ST), Writ Petition No.24955/2021 have reiterated that statutory notice and assessment are mandatory preconditions before invoking penal provisions. No such notice or assessment has been conducted in the present matter. The Hon'ble Sup....

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....and complaint has been filed. 6. I have heard learned counsel for the parties and perused the case diary. 7. Taking into consideration the fact that the complaint has already been filed against the applicant and further no statutory notice or assessment has been conducted against the applicant under the SGST Act, 2017, the quantum of tax involved remains unassessed and appealable, and the applicant has fully cooperated with the investigation and further the compliant has been filed, it appears that no purpose would be served by his further detention. The primary object of the Act is economic recovery rather than punitive incarceration. In view of the settled principles of law laid down by the Hon'ble Supreme Court in Vineet Jain (supr....