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TMI Blog2022 (8) TMI 918X X X X Extracts X X X X X X X X Extracts X X X X ..... advocate submitted that the applicant is a director of Penrex Chrome Stationary Private Limited engaged in business of stationery since 2011. It is their further contention that applicant was not served with notice to clarify what were the exact unpaid amount or the default made in paying the GST by their company. Ld. Adv. For applicant submitted that applicant is carrying business of import and export of stationary and related items has duly paid the tax amount of GST at the time of clearance of goods. 3] It is their further submission that as per the summary of the purchases for the consecutive five years since 2017 till 202122. The total Input Tax Credit (hereinafter referred to ITC) is Rs.7,61,66,161.54 ps. and for which IGST has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns applicant failed to appear before the Authority though they filed the reply but the same was not satisfactory it needed explanation from the applicant and therefore, the investigation could not be carried out further. It is further stated that fake invoices were issued to evade GST. 7] Ld. Spl.P.P. further stated that the other two companies involved in the evasion of tax alongwith the applicant are also enquired. One of them is arrested. There appears to be fake invoices. Without the supply of goods through which the government money has been siphoned off. As per the invoice there being transactions of Rs. 37,35,23,304/involved tax Rs.6,66,33,445/for the period since 2017-2018 to 2020-20-21. 8] It is their contention that fraud of hug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned authority as directed. Deputy commissioner Abhishek Anand is present before the Court alongwith the investigation papers and submitted that though some of the documents the applicant has furnished alongwith the reply but there are no movement bills and invoices of the goods purchased. The EV bill for the total transaction around 37 crores rupees is also suppressed by the applicant while filing the documents. The investigation with the other concerned companies involved in the crime are conducted. Wherein it has been revealed fake invoices are prepared to avoid the taxes. The involvement of present applicant was disclosed during the primary inquiry. 12] Ld. Spl.PP for the respondent vehemently argued that the name of the applicant compa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of P.V. Ramana Reddy S/o. P. Shankar Reddy V/s. Union of India, Ministry of Finance. 13] On the other hand Ld. Advocate for the applicant is having permanent residence. He is cooperating in the investigation. Nothing is to be recovered at the instance of applicant. It is their further submission that as the director of Ms/ Amarnath Enterprises is already arrested and investigation is almost completed. No purpose will be served by firstly arresting and then releasing on bail. In support of the submissions following citations are relied on by the Ld., advocate for the applicant. I have carefully gone through the authorities cited by both the sides. The observations will be considered while deciding the merits of the case. 14] Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fence U/Sec. 132(5) of the CGST Act. There are some admissions from M/s. Amarnath Industries were aware of some illegal transactions being carried out by accused applicant company for the purpose of evading CGST. 18] It is apposite to note in the terms of Sec.136 CGST of the Act, disclosure in the statement is relevant for proving any offence under this Act. Under these circumstances, when it is shown fraudulent ITC claimed about 6 Crores of Rupees is a matter of grave concern and requires thorough investigation for which presence of applicants is absolutely necessary. 19] It appears instead of cooperating with the ongoing investigation by submitting relevant documents and making themselves available for further investigation and enquiry. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve offences affecting the economy of a country as a whole and thereby posing serious threat to the financial health of the Country. 25] It is apparent to note that applicant company has availed the ITC on the inward supplied from M/s. Empire exim INC for the period 2018-19 & 2019-2020 and availed ITC for around 55 lakhs and bill data in respect of Empire exim Inc is carefully verified. It has been further revealed M/s. Amarnath Enterprises and M/S. PhotoKom India has further supplied the goods to the company of applicant. There were no movement of the goods and only invoiced were being issued to pass on fake ITC. 26] During the course of investigation two companies as above were investigated having their active role in avoiding GST. One P ..... X X X X Extracts X X X X X X X X Extracts X X X X
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