TMI Blog2020 (12) TMI 937X X X X Extracts X X X X X X X X Extracts X X X X ..... ere is an inter-connected chain of sellers and purchasers as the purchaser gets the credit of tax paid or suffered by seller. The chain can be within the State or PAN-India. One link in the chain being ingenuine, doctored or nonexistant, would impact the entire chain. The nature of allegation in present case of evasion of GST requires a deeper probe. There are far reaching ramifications which may vary from allowing of input credit/ MODVAT of tax not paid to the Government to an eventuality that the credit of tax paid on some other product is used for something else. Not only this, someone later in chain in spite of being a bonafide purchaser not aware of the earlier misdeed in the chain yet will have to suffer the consequences - The alle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mportance. But when personal liberty is pitted against a sovereign function i.e. collection of tax which is life blood of the economy, the latter would prevail. Present is a case where arrest is imperative for fair and full investigation - Considering the complexity of the issue, the tax impact on chain of sellers and purchasers, the material as on date with the investigating agency, the multi dimensional aspects involved which needs a deeper probe, no case is made out for grant of pre-arrest bail. Petition dismissed. - CRM-M-31157 of 2020 - - - Dated:- 7-10-2020 - MR. AVNEESH JHINGAN, J. Mr. Pradeep Virk, Advocate for the petitioner. Ms. Rashmi Attri, AAG Punjab. ORDER The matter is taken up for hearing through vi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... less amount be paid to the officers. The Vigilance Department pursued the call details and inputs of the mobile numbers in question, for last one year. It was further stated in the FIR that bogus bills were used to transport the goods, the descriptions and the values of goods were changed. Other officials were also involved, who gave the prior information to the transporters and passers about the checking. Twelve officers of Excise and Taxation Department have been named in the FIR. It was stated that apart from the allegations in the FIR, other inputs having incomplete details are being investigated and if more names come to light, they would be nominated for necessary action. It would be pertinent to note that the office of the petiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d more so on the mobile wing of the department. Under the GST, there is an inter-connected chain of sellers and purchasers as the purchaser gets the credit of tax paid or suffered by seller. The chain can be within the State or PAN-India. One link in the chain being ingenuine, doctored or nonexistant, would impact the entire chain. The nature of allegation in present case of evasion of GST requires a deeper probe. There are far reaching ramifications which may vary from allowing of input credit/ MODVAT of tax not paid to the Government to an eventuality that the credit of tax paid on some other product is used for something else. Not only this, someone later in chain in spite of being a bonafide purchaser not aware of the earlier misdeed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the discrepancies found in the files and the way the detained vehicles were being dealt by the officers concerned. There are indicators that the minor penalties imposed and recovered in cash were even not deposited in the Government Treasury. The investigating agency had initiated action on the basis of the the information. The allegations against the petitioner is that he is running a transport business and in connivance with the officials of Excise and Taxation Depatment, a racket is being run with the help of others to dent the public exchequer. The contention of learned counsel for the petitioner that no recovery is to be made is not well founded. Merely the fact that the computers and registers are already with vigilance depart ..... X X X X Extracts X X X X X X X X Extracts X X X X
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