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2023 (2) TMI 814 - DSC - GSTSeeking grant of bail - evasion of GST - passing on fake ITCs, without actual supply of goods - HELD THAT:- It is matter of record as is reflected from the documents annexed with bail applications of accused/ applicants that the firm M/s Hindustan Papers Machinery Industries firstly received summons from Sr. Intelligence Officers of Gurgaon Zonal Unit of DGGI as is reflected from summons dated 02.11.2021 and summons dated 19.10.2022 in respect of alleged availing of ITC as one enquiry/investigation was initiated. Similarly same firm i.e. M/s Hindustan Papers Machinery Industries has again received summons from UP State GST on 03.06.2022, 13.06.2022, 04.07.2022, 27.07.2022 (copy of which are lying along with the application). It is thereafter DGGI DZU has also initiated the action with the same allegations of alleged evasion of tax by availing ITC on the basis of fake invoices. It is evident from bare language of the Section 6(2)(b) of CGST Act that once any action regarding subject matter of any offence committed under Section 132 of the CGST Act has been initiated, then in respect of same subject matter no other authority/proper officer under the Act would initiate the proceedings. Apparently such provision has been made to avoid multiplicity of enquiry/ investigation from different authorities because under the CGST Act there are authorities at State level as well as Central level. Legislature in its intentions had ultimate object to trace the evasion of tax and to collect the GST at State as well as Central level. From the scheme of CGST Act and the guidelines dated 17.08.2022 from GST Investigation Wing, Ministry of Finance, it is very much evident that the ultimate object of the Act of 2017 is to ensure assessment, levying of GST in accordance with Act and to ensure a deterrent procedure to avoid evasion of tax. Also, the personal liberty of accused persons cannot be deprived only on the ground that some other persons, who may be required for the investigation of the matter, are not traceable to the Department. The accused are ordered to be admitted to bail upon furnishing of bail bond in the sum of Rs.20,000/- with one surety in the equal amount each to the satisfaction of ld. MM/ Duty MM/ACMM/CMM/court concerned, subject to conditions imposed. Bail application allowed.
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