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2021 (1) TMI 1318 - BOMBAY HIGH COURTParallel proceedings - Seeking grant of bail - Recovery of tax - evasion of tax by not disclosing the details of the transactions - failure to disclose true liability to pay the tax - whether the applicant can be simultaneously prosecuted under the provisions of the VAT Act as well as for the offences punishable under the Indian Penal Code? - HELD THAT:- The issue is no longer res integra. One need only refer to the decision of the Supreme Court in the case of STATE OF WEST BENGAL VERSUS NARAYAN K. PATODIA [2000 (4) TMI 777 - SUPREME COURT] and the Division Bench judgment of this Court in the case of G.S. OILS LTD. THROUGH ITS M.D. SHRI MANOJ KUMAR SHRIGOVIND AGRAWAL AND ANOTHER VERSUS THE STATE OF MAHARASHTRA THROUGH PSO WANI, DIST. YAVATMAL AND OTHERS AND (UMESHKUMAR NARAYANLAL AGRAWAL VERSUS STATE OF MAHARASHTRA, THROUGH PSO WANI [2012 (10) TMI 1274 - BOMBAY HIGH COURT] where it was held that there could be a prosecution under both the VAT Act as well as the Indian Penal Code. As far as the ingredients of offence punishable under Section 406 and 409 of the Indian Penal Code are concerned conceptually, a dealer like the applicant would act as an agent of the Government for recovering the tax and depositing it with the latter. It would thus tantamount to creating a relationship of a principal and an agent between the Government and the dealer. If the dealer is supposed to recover the tax it would come with a consequential liability to credit it to the Government - it is in this manner prima facie the applicant can be said to be entrusted with the money which he was liable to pay to the Government but has failed to do so. The period for which he failed to deposit the VAT and the enormity of the amount is sufficient to disentitle him of any protection in the form of anticipatory bail - bail application dismissed.
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