Page 68 - GSTL_30th April 2020_Vol 35_Part 5

554 GST LAW TIMES [ Vol. 35
along with some unknown persons had conspired to effect an offence of theft.
After the enquiry conducted, it emerges that in another account existing in the
name of the accused-applicant, through statement of account, it came into light
that the Bank by the name of DD Nagar, Gwalior, M.P. was being run and in the
said bank, the applicant after giving his address as Govind Enterprise, New Ma-
havir Colony, Birla Nagar Murar, Gwalior got opened account in HDFC Bank,
therefore, it is clear that account which was got opened in HDFC after giving
address of a different bank branch would reflect that the address of the bank
branch was mentioned as HDFC, DD Nagar Abhilasha Bhawan House No. 1, R.J.
Puram Mahrautra Firm, Bhind Road, Gwalior, M.P.-474020. When the said bank
account was inspected, it was found that the applicant had deposited a sum of
Rs. 9,39,07,715/- between 11-7-2018 to 16-11-2018 and the details of the same
have been mentioned in the FIR. The said account reveals that the applicant was
running his business by the name of Govind Enterprises from an address 47,
Rajpal Nagar Colony, N.H-2, Rachi Bangar, Baad, Mathura then why he felt it
necessary to open another account in State of M.P. Further, whatever amount he
received after sale to other traders, the entire transaction happened in the State of
U.P. and it is not clear as to under what circumstances, he deposited such huge
amount in other State while there was facility available of Internet Banking,
RTGS as well as NEFT. The deposit of huge amount by a third trader and others
in the State of M.P. shows that in collusion with some unknown person, a con-
spiracy was hatched for evasion of tax. After enquiry into the units of the appli-
cant’s firm and from the bank statement and other details mentioned on GSTN
Porter, it appears that the applicant was not running his business in accordance
with rules at his given premises on 27-9-22018 as neither the board of the firm
was installed there nor any account books were found and whatever sale and
purchase had been shown through the papers, the same appeared to have been
done in collusion with some unknown firm and person in order to avoid the tax
payment. Further, it is mentioned that the business is being shown to have been
run from two places, and if those places be taken into consideration particularly
their geographical situation as well as their size, it was not possible to do such
huge business. During enquiry, at Fazalganj Branch, the owner of the property
clearly admitted that neither he knew the applicant nor had he given his premis-
es for running the business by the name of Govind Enterprises. Therefore, when
the said declared branch never existed, question does not arise of keeping the
account books there and it was found that Govind Enterprises did not exist at its
main place of business rather the purchased items appeared to have been sold
somewhere else on the basis of bogus document. Further, it is mentioned that the
bank account of the applicant’s firm is saving bank account which got opened in
Oriental Bank of Commerce, village post Aurangabad, Mathura, account number
of which is 04672121008171, which proves that the economic capability of the
applicant was extremely limited because the total balance amount in the said
account stood at Rs. 6848/- only and that no transaction was done from the said
account. Therefore, there was sufficient basis to come to the conclusion that the
applicant was either working in collusion with the some unknown firm/person
or was working as an agent and in collusion with some person as thus has given
effect to tax evasion. Further a huge amount having been deposited at HDFC
Bank, Gwalior, M.P. would indicate that after collusion with some unknown
firm/person, a conspiracy was hatched to commit tax evasion. According to the
registration, the applicant’s firm appears to have been registered for purchase of
plastic laminated foil, printed plastic laminated pouch, printed paper Alumini-
um etc. and from e-way bill downloaded by the applicant, the article appears to
GST LAW TIMES  30th April 2020  68