TaxTMI 
TaxTMI 
TaxTMI 
2026 (1) TMI 1070
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.... land, but a larger loan could be secured if he formed a proprietorship firm and obtained GST registration in the name of the said firm. Acting on this inducement and false assurance, the complainant registered a firm in the name of Maa Narmada Traders for which documents such as Aadhaar, PAN, bank statements, land records and loan books were handed over to the co-accused. It is further alleged that without the complainant's consent, the co-accused got registered an email ID [email protected] in the GST records and also registered the complainant's son's mobile number for GSTOTP verifications. That subsequently, GST Registration No.23ALLPL1056B1ZM was issued in the name of Maa Narmada Traders. However, the complainant never carried out any business through the said registration. Later, when GST authorities visited the complainant, he was informed that tax dues to the tune of Rs 72,66,408/- were outstanding against the said firm. This came as a shock to the complainant, as bogus transactions of crores of rupees had been shown in the name of Maa Narmada Traders without his knowledge or involvement. It is further stated that, co-accused N.K. Khare and Satyam Soni had fraudul....
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....custody period as GST is itself a self contained Code and necessary procedure shall be followed as per that Code itself. 6. Per contra, learned counsel appearing for the respondent has opposed the contentions raised by the counsel for the applicant and by referring to Section 131 of the GST Act submits that offences are serious in nature. It is also contended that investigation in the matter is going on in respect of co-accused persons and further interrogation may reveal many more scam and fraud which might have been committed by the present applicant and other co-accused persons. It is further contended that figure of such fraudulent amount may increase with further interrogation. It is vehemently urged that provisions of GST Act generates asset for the nation and these activities carried out by the persons like the present applicant jeopardize the national interest on that count also the Court should take a serious view in such matters and should not exercise discretion in favour of the applicant especially looking to the fact that prima facie case is made out against the applicant. 7. I have considered the rival submissions made by learned counsel for the parties at the B....
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.... SC 614] the competing statutes being the Banking Companies Act, 1949 as amended by Act 52 of 1953, and the Displaced Persons (Debts Adjustment) Act, 1951. Section 45-A of the Banking Companies Act, which was introduced by the amending Act of 1953, and Section 3 of the Displaced Persons Act, 1951 contained each a non obstante clause, providing that certain provisions would have effect "notwithstanding anything inconsistent therewith contained in any other law for the time being in force ...". This Court resolved the conflict by considering the object and purpose of the two laws and giving precedence to the Banking Companies Act by observing : (AIR p. 622, para 7) '7. ... It is, therefore, desirable to determine the overriding effect of one or the other of the relevant provisions in these two Acts, in a given case, on much broader considerations of the purpose and policy underlying the two Acts and the clear intendment conveyed by the language of the relevant provisions therein.' As indicated by us, the special and specific purpose which motivated the enactment of Section 14-A and Chapter III-A of the Delhi Rent Act would be wholly frustrated if the provisions of t....
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....he applicant. In paragraphs 18 to 20 of the said judgment, High Court of Karnataka has held thus: "18. Sections 69 and 70 of the CGST Act are reproduced hereunder: "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 sub-section (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 Code of Criminal Procedure, 1973 (2 of 174), - (a) where a person is arrested under sub-section (1) for any offence specified under sub-section (4) of section 132, he shall be admitted to bail or in default of ball, forwarded to the custody of the magistrate; b) in the case of ....
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....est must also always be subject to necessary safeguards. Against this backdrop, analysing the arrest provisions under the goods and services tax law, with a view to study the adequacy of the safeguards and authorisation built into the text of the statute, the interplay between these provisions and the standards of arrest has to be established through judicial precedents, as well as other sources such as the Constitution of India and general statutes such as the Code of Criminal Procedure." 11. In Sushil Kumar Singla (supra) in paragraphs 18 to 21 it has been held as under: "18. In State (NCT of Delhi) v. Sanjay, (2014) 9 SCC 772, the question before the Apex court was whether the provisions contained in Section 21, 22 and other sections of Mines and Minerals (Development and Regulation) Act 1957 (MMDR Act) operate as bar against prosecution of a person who has been charged with allegation under Section 379 of IPC? The Apex court after reading the act in a minute manner has held that if an offence which is mentioned in MMDR Act is executed by the accused, then such offence can be tried only under such act by the procedure laid under the said act. However, if an act or of....
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....g Sections 24-A, 25 and 26 keeping in view the settled law that if there are two possible constructions of o statute, then the one which leads to anomaly or absurdity and makes the statute vulnerable to the attack of unconstitutionality should be avoided in preference to the other which makes it rational and immune from the charge of unconstitutionality. That apart, the court cannot interpret the provisions of the Act in a manner which will deprive the victim of the offences defined in Sections 416, 463, 464, 468 and 471 of his right to prosecute the wrongdoer by filing the first information report or complaint under the relevant provisions of CrPC."xxxxxxxxxx 42. The submission of Shri Gupta that the respondent cannot be prosecuted for the offences defined under IPC because no complaint had been filed against him by the court concerned or authority as per the requirement of Section 195(1)(b)(ii) CrPC sounds attractive but lacks merit. The prohibition contained in Section 195 CrPC against taking of cognizance by the court except on a complaint in writing made by the court concerned before which the document is produced or given in a proceeding is not attracted in the case ....
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....e following submissions of the parties in paragraphs 4 and 5, in paragraph 6 held that custodial interrogation is not required. The aforesaid paragraphs reads as follows: "4. Learned counsel for the applicant submitted that the applicant has been falsely implicated in the case. It is alleged that the applicant is a Director of the Agrawal Soya Extract Pvt. Ltd. along with co-accused persons and all of them entered into a criminal conspiracy and prepared bogus invoice, bill T and Soybean DOC in order to demonstrate sale and purchase of soyabean on paper in order to get the benefit of GST Input Tax Credit on sham transactions. It is further alleged that the bank account of the aforesaid company was opened in IndusInd Bank, Indore which was being operated by co-accused Navneet Garg which is evident from the letter issued by the bank. All the cheques were issued under the signature of co-accused Navneet Garg. Learned counsel for the applicant contended that the applicant is the wife of co-accused Deepak Singhal and is a dormant partner in the company who has nothing to do with the day-to-day affairs of the company. The applicant is ready to cooperate in the investigation. Ther....
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....(d); (f) falsifies or substitutes financial records or produces fake accounts or documents or furnishes any false information with an intention to evade payment of tax due under this Act; * (h) acquires possession of, or in any way concerns himself in transporting, removing, depositing, keeping, concealing, supplying, or purchasing or in any other manner deals with, any goods which he knows or has reasons to believe are liable to confiscation under this Act or the rules made thereunder; (i) receives or is in any way concerned with the supply of, or in any other manner deals with any supply of services which he knows or has reasons to believe are in contravention of any provisions of this Act or the rules made thereunder; * * (l) attempts to commit, or abets the commission of any of the offences mentioned in [clauses (a) to (f) and clauses (h) and (i)] of this section, shall be punishable-- (i) in cases where the amount of tax evaded or the amount of input tax credit wrongly availed or utilised or the amount of refund wrongly taken exceeds five hundred lakh rupees, with imprisonment for a term which may extend t....
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....ervices Tax (Compensation to States) Act." 14. The applicant is an accused of wrongful utilisation of input tax credit. Considering the allegation in the FIR that a total sum of about Rs. 10 Crores is involved and if the alleged amount is more than Rs. 5 Crores, then maximum sentence which can be awarded, is five years. There is also provision under Section 138 of the Act which provides for compounding of offences before or after prosecution. Therefore, possibility of compounding can also not be ruled out. Today this Court has granted anticipatory bail to co-accused Dheeraj Gupta in M.Cr.C. No.40741/2025. The present applicant is in custody since 02.07.2025 and further detaining of the applicant will adversely affect the business of the applicant. Accordingly, this Court is inclined to allow this application under Section 483 of the BNSS (Section 439 of the Cr.P.C) and release the applicant on bail. 15. It is directed that applicant be released on bail on his furnishing a personal bond in the sum of Rs. 5,00,000/- (Rupees Five Lacs only) with two solvent sureties in the like amount to the satisfaction of the trial Court, for his regular appearance before the trial Court durin....