Page 44 - GSTL_30th April 2020_Vol 35_Part 5

530 GST LAW TIMES [ Vol. 35
2. The instant petition seeks quashing of the first information report
dated 6-2-2020 registered as Case Crime No. 0350 of 2020 at PS. Sihani Gate, Dis-
trict-Ghaziabad, under Sections 420, 424, 467, 468, 120-B I.PC. and Section
122/132 of Goods and Services Tax Act (hereinafter referred to as GST Act).
3. The impugned first information report has been lodged by Commer-
cial Tax Officer (Special Investigation Cell), Commercial Tax, Range A, Gha-
ziabad alleging that on scanning of information available at GST Portal and in-
formation received from the mobile squad of Commercial Tax Department re-
garding the vehicles seized with goods without proper documents, exercising
power under Section 67 of the GST Act, the Joint Commissioner (Investigation),
Trade Tax, Range A, Ghaziabad, by order dated 6-11-2019, constituted and au-
thorized a team of officers to carry out search and seizure operations at declared
places of business. It is alleged that when the team visited the declared place, it
found that it was not functioning as a registered office of any firm; no business
activity could be noticed; no goods were found; and the person present there,
namely, Shubham Sharma, informed that the place was not being used for any
business but only for preparing documents. Shubham Sharma informed the team
that he works for Dilshad Malik (petitioner No. 2). The electricity connection of
the premises was found in the name of Shahzad Alam (petitioner No. 1). In the
room, tax invoices and E-way bills of 61 firms were found. In addition thereto,
rubber stamps and seals of the Proprietor/Authorized signatory of 16 firms were
found. A cheque book of Nirala Traders and Bilty Book of two transporters and
original tax invoices of one Ravi Industries was found. Upon search of another
room, one Abid was found, who disclosed that he works for Junaid Malik. In that
premises, a bill and electricity bill was found which was in the name of Dilshad
Malik. In that room, a rubber stamp/seal of the Proprietor of M/s. A.K. Metal
Traders with a specified GST number was found. What was noticed was that
none of the firms whose papers were found had the specified address as their
place of business. Consequently, on the basis of information received, separate
teams were constituted to make inspection of the firms whose documents were
found there and, upon enquiry, majority of those firms were found non-existent.
The place from where papers, rubber stamps and seals were recovered was dis-
covered to be under the control of Shahzad Alam and Dilshad Malik (petitioner
No. 1 and petitioner No. 2, respectively). On the basis of above inspec-
tion/inquiry, a prima facie conclusion was drawn that Dilshad Malik and Shah-
zad Alam had been indulging in preparing and utilizing bogus tax invoices for
evading tax. As a result, summons were issued under Section 70 of the GST Act
seeking their explanation. On the basis of the explanation submitted, further en-
quiry was conducted by the Inspection Team, upon which, it was found that
Shahzad Alam is a resident of New Islam Nagar, Meerut and the place which
was earlier inspected has been in the name of Shahzad Alam which had been let
out to Azad Malik (petitioner No. 3). In his explanation, Shahzad Alam stated
that he carries no business from that specified place. The said explanation was
not found correct because the Joint Team had found original papers of M/s. Cap-
ital Industries (GSTN number specified) whose proprietor was Shahzad Alam. It
is stated in the FIR that Azad Malik was also interrogated. He stated that he had
taken the place on rent from Shahzad Alam for keeping old generators and for
selling spare parts. When he was enquired in respect of papers found there, he
stated that he has no knowledge as to how those papers were found there. Later,
however, he submitted a written submission claiming responsibility for the doc-
uments seized from the specified place and claiming that his earlier statement
was made under some misconception. It is alleged that thereafter Dilshad Malik
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