Page 60 - GSTL_18th June 2020_Vol 37_Part 3

274 GST LAW TIMES [ Vol. 37
connection with File No. INV/DGGI/HZU/GST/127/2018-19 PF-4 (Legal),
dated 1-2-2019, registered for the offences punishable under Section 132(1)(i)
read with Section 132(1)(b)(c) of Goods and Services Tax Act, 2017 (for short,
“GST Act”).
2. Heard Sri. D. Prakash Reddy, Learned Senior Counsel, appearing on
behalf of Sri M.P. Kashyap, Learned Counsel for the petitioner, Sri Anil Prasad
Tiwari, Learned Special Public Prosecutor for Directorate General of GST Intelli-
gence, Hyderabad Zonal Unit, Hyderabad, representing the respondents and
perused the record.
3. The Learned Senior Counsel appearing on behalf of the petitioner
would submit that the petitioner is a Director of M/s. Adarsh Global Trades and
Services Private Limited. Initially, the subject criminal case was registered
against one Sangapu Raveendra, Chief Financial Officer of M/s. Adarsh Global
Trades and Services Private Limited, having its office at Hyderabad. Search op-
erations were conducted by the respondent No. 2-Senior Intelligence Officer,
O/o. Director General of Goods and Services Tax Intelligence, Hyderabad Zonal
Unit, Hyderabad, and various documents relating to M/s. Adarsh Global Trades
and Services Private Limited were seized. Subsequently, the respondent No. 2
served summons to the Chief Financial Officer of M/s. Adarsh Global Trades
and Services Private Limited under Section 70 of the GST Act. Thereafter, the
Chief Financial Officer was arrested and after thorough investigation, he was
granted regular bail by the Court concerned. In the course of recording of the
statements of the Chief Financial Officer, it has come up that the petitioner is re-
sponsible for the day-to-day activities of M/s. Adarsh Global Trades and Ser-
vices Private Limited and is responsible for evading payment of Input Tax Credit
to an extent of Rs. 36 crores, by creating fake invoices. It is also contended by the
Learned Senior Counsel appearing on behalf of the petitioner that the petitioner
is no way connected with the day-to-day affairs of M/s. Adarsh Global Trades
and Services Private Limited. Except the statements made by the Chief Financial
Officer in the course of his enquiry by the respondents, there is no oral and doc-
umentary evidence to substantiate that the petitioner is managing the day-to-day
affairs of M/s. Adarsh Global Trades and Services Private Limited or to establish
his participation in managing the day-to-day affairs of the said company. Since
the name of the petitioner has come up in the statements made by the Chief Fi-
nancial Officer in the course of his enquiry by the respondents, the petitioner is
apprehending arrest in the subject crime. The Chief Financial Officer is already
arrested and material documents were collected. There is nothing to collect at the
instance of the petitioner in the subject crime. The offences alleged are com-
poundable, non-bailable and triable by the Special Court and further, the peti-
tioner is ready to cooperate with the investigating agency and ultimately prayed
to allow the application.
4. On the other hand, the Learned Special Public Prosecutor represent-
ing the respondents would contend that the petitioner is responsible for tax eva-
sion to an extent of Rs. 36 crores. No summons, as required under Section 70 of
the GST Act, were served on the petitioner. Investigation is in progress. If the
submissions made on behalf of the petitioner are acceded, it causes heavy loss to
the State exchequer and ultimately prayed to dismiss the application. In support
of his contentions, the Learned Special Public Prosecutor had relied on a decision
of the Apex Court in Union of India v. Padam Narain Aggarwal [(2008) 13 SCC 305
= 2008 (231) E.L.T. 397 (S.C.)].
GST LAW TIMES  18th June 2020  60