TaxTMI 
TaxTMI 
TaxTMI 
2026 (1) TMI 1069
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....ccused N.K. Kharealias Vinod Kumar Sahay, who induced him by stating that only a small loan could be availed on agricultural 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 Narmad....
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....he allegedly derived a commission of 1% from Ms. Hella Infra Market Pvt. Ltd.; On 15.03.2024 Show-cause notice was issued by Additional Commissioner, Goods and Services Tax (GST) regarding the allegation that Ms. K.D. Sales Corporation, Proprietor Shri Pramod Kumar Namdev, Indore was a non-existent entity created solely for the purpose of availing and passing on ineligible/fraudulent Input Tax Credit (ITC); On 25.07.2024: Applicant duly submitted his reply to the impugned show cause notice and had categorically stated that the entire show cause notice against the applicant is totally misconceived and unsustainable in law; On 29.10.2024: The applicant preferred an appeal against the assessment order dated 30.12.2022, whereby an arbitrary addition of Rs. 1,19,83,144 has been made; On 21.06.2025: First Information Report has been registered bearing crime number 102/2025 at the Economic Offences Wing Police Station - Bhopal, MP for offences punishable under Section 467, 468, 471 read with Section 120-B of the IPC and Section 66-D of the IT Act. 4. Learned counsel appearing for the applicant submits that the present applicant - Dheeraj Gupta was al....
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....el for the applicant and by referring to Section 131 of the GST Act submits that offences are serious in nature and custodial interrogation is required as 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. 9. I have considered the rival submissions made by learned counsel for the parties at the Bar. 10. It is relevant to note that various High Courts as well as the Apex Court have considered similar types of matters in favour of the applicants therein. In this context it is appropriate to refer to certain relevant decisions in the field: In the case of Sharat Babu Digumarti (s....
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.... 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 the Slum Clearance Act requiring permission of the competent authority were to prevail over them. Therefore, the newly introduced provisions of the Delhi Rent Act must hold the field and be given full effect despite anything to the contrary contained in the Slum Clearance Act." 11. Indore....
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....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 a non-cognizable and bailable offence, the Deput Commissioner or the Assistant Commissioner shall, for the purpose of releasing an arrested person on bail or otherwise, have the same powers and be subject to the same provisions as an officer-in-charge of a police station. ....
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....se 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." 13. 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 offence which constitutes an offence under IPC, then the provisions of MMDR Act shall not stand in a way to stop the applicability of IPC and such offence can be prosecuted under IPC without waiting or following the procedure under the MMDR Act. 19. In the case of Institute....
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.... 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 like the present one because the officers of the Income Tax Department and the authorities constituted under the Madhya Pradesh Trade Tax Act, 1995 before whom the respondent is alleged to have acted on the basis of power of attorney or as legal representative or produced audit re....
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....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. There is no likelihood of applicant's absconsion or tampering with the prosecution evidence if she is released on anticipatory bail. She is ready to abide by the terms and conditions as may be imposed by this Court. With the aforesaid submissions prayer for grant of anticipatory ba....
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....nsporting, 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 to five years and with fine; (ii) 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 two hundred lakh rupees but does not exceed five hundred lakh rupees, with imprisonment for ....
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....of T.T. Antony v. State of Kerala, (2001) 6 SCC 181; Amitbhai Anilchandra Shah v. CBI, (2013) 6 SCC 348; and Arnab Ranjan Goswami v. Union of India ; (2021) 1 SCC 1, prima facie it appears that the action of the respondent would amount double jeopardy to the applicant. At this stage, it is apt to refer to the decision of the Apex Court in the case of Sushila Aggarwal and Others v. State (NCT of Delhi) and Another, (2020) 5 SCC 1 wherein factors have been enumerated which shall be taken into consideration while granting anticipatory bail and that aspect has been discussed by the Apex Court in paragraphs 92.3 and 92.4 which read as follows: "92.3. Nothing in Section 438 CrPC, compels or obliges courts to impose conditions limiting relief in terms of time, or upon filing of FIR, or recording of statement of any witness, by the police, during investigation or inquiry, etc. While considering an application (for grant of anticipatory bail) the court has to consider the nature of the offence, the role of the person, the likelihood of his influencing the course of investigation, or tampering with evidence (including intimidating witnesses), likelihood of fleeing justice (such as l....