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TMI Blog2021 (6) TMI 640X X X X Extracts X X X X X X X X Extracts X X X X ..... of the 1st petitioner and some others under Section 83 of Central Goods and Services Tax Act, 2017 (for short 'CGST Act, 2017') and the notice in F.No.DGGI/VZU/ INV/GST/13/2019/2246-48, dated 09.07.2019 issued by the Deputy Director on the approval of the 3rd respondent informing the 5th respondent - Branch Manager, Laxmi Vilas Bank, Guntur that on the request of the petitioners and one Vennapusa Venkata Subba Reddy, the date of opening of the bank lockers has been fixed as 24.07.2019, as illegal and contrary to the provisions of the CGST Act and its rules and violative of Articles 14, 19(1)(g), 21 and 300(A) of the Constitution of India and also violative of principles of natural justice and consequently to set aside the aforesaid proceed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ose fictitious/shell firms operated by V.V Subba Reddy and the 1st petitioner. The searches were conducted in the places like Guntur, Vijayawada, Narsaraopeta, Hyderabad etc., and they revealed that no business firms have operated from those premises and the CGST registrations were taken fraudulently in the names of different firms using wrong credentials/addresses with a view to passing of ITC by issuing fake tax invoices without actual supply of goods. Investigation further revealed that around 90 different firms are operated by V.V Subba Reddy for the purpose of claiming ITC by issue of fake tax invoices during the period and these firms operated in a network so as to conceal evasion. Some of the fictitious/shell firms, where searches we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ials for opening business firm to the 1st petitioner and that all documents for creation of the firm including the opening of the bank account in Lakshmi Vilas Bank were handed over to one Sri Nalla Venkataiah at the request of 1st petitioner. He has further stated that the firm opened in the name of M/s. Sree Kaveri Enterprise including the bank account in the firm name was created and operated by the 1st petitioner and he was not aware about the taking of the CGST Registration in the name of the firm and he requested the 1st petitioner to close the firm and the bank account but she has not informed about the details of the business operations. Thus, from the statement of the Jaluri Sai Babu, it is clear that the 1st petitioner is one of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the investigation and by following the CGST Act and Rules and therefore, the petitioners cannot claim any violation of their rights. 3. Heard Sri V.V. Lakshmi Narayana, learned counsel for petitioners Sri M.V.J.K. Kumar Senior Standing Counsel for Central Excise, Customs and Service Tax representing respondent Nos.1 to 4 and 6. 4. The main contention of the learned counsel for petitioners is that while attaching the bank account of the petitioners vide impugned proceedings F.No.DGGI/VZU/INV/GST/13/2019 dated 08.03.2019, no show cause notice was served on the petitioners to offer their explanation. So also the bank locker number-8 of the petitioners was freezed and no opportunity was given to the petitioners to submit their explanation. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ST invoices in the name of more than 70 fictitious/non-operating firms created by him at different locations in the States of Andhra Pradesh and Telangana without actual supply of goods to facilitate availment of irregular input tax credit and thereby defrauded the Government's tax revenue. It is further alleged that search operations were conducted in the registered office premises of different enterprises and also the premises of the Accountant of Vennapusa Venkata Subba Reddy and incriminating documents were recovered. Scrutiny of the documents revealed that Vennapusa Venkata Subba Reddy created 70 different fictitious/shell firms in Andhra Pradesh and Telangana for taking GST registrations. The modus operandi of the said Vennapusa Venka ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hose name fake GST invoices are issued for passing on ITC. In this process, Vennapusa Venkata Subba Reddy has issued fake GST invoices with a total turnover of Rs. 397,28,11,944/- without supply of goods to different business firms/companies by passing on a total fraudulent input tax credit of Rs. 61,30,33,274/- in respect of 21 firms, out of more than 70 firms created by him and thus caused huge loss to the Government exchequer. The investigation is stated to be pending. (a) In furtherance of investigation, the Senior Intelligence Officer has attached the bank accounts and lockers of some of the companies on the apprehension that they are operating as shell companies for Vennapusa Venkata Subba Reddy. It is alleged that the petitioners' f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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