TMI Blog2023 (2) TMI 814X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of CGST Act who in papers was allegedly shown partner of M/s Shankar Trading Company. It is in allegation that firm M/s Shankar Trading Company has only received invoices without supply of goods in respect of alleged purchase of copper scrap and issued sale invoices to M/s Hindustan Papers Machinery Industries. It is alleged that in such manner partners of M/s Hindustan Papers Machinery Industries namely Rajiv Chawla and his wife Shipra Chawla (accused/applicants) have been main beneficiary of financial proceeds. It is stated in the reply filed by DGGI that initially assessed quantum of GST evasion to be of Rs.30 crores however with the progress of investigation it swelled to be Rs.47 crores approx. 4. In bail applications of the accused/applicants it is stated that accused Rajiv Chawla has been illegally kept in forcible detention of DGGI on 03.02.2023 and thereafter shown arrested in documents on 04.02.2023. It is submitted that accused/ applicants have never been served with any summons or any notice in the form of Section 41A Cr.P.C. It is stated that when accused were produced before the court of ld. MM on 04.02.2023 it is mentioned in remand papers that accused has alread ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chawla, it is submitted that accused Shipra Chawla was only a sleeping partner in firm and has no knowledge or concern with day to day affairs of said firm. As such there was no criminal intention or knowledge attributable to said accused. Regarding accused Rajiv Chawla, it is further submitted that accused has been suffering from many medical problems as per documents annexed with the application. Accused Shipra Chawla being a housewife has to look after her 15 years old school going child who has to appear for examination as well as old age ailing mother in law. 9. It is submitted by ld. Counsel for accused/applicants that accused are no more required in the investigation and has been in judicial custody since 04.02.2023. 10. Sh.Harpreet Singh, ld. Sr. Standing Counsel for Department on the other hand submitted that three other accused in the matter namely Ashish Pandey, Suman Singh and Sumit Magoo are still absconding and investigation of the Department is still going on. Ld. Sr. Standing Counsel for the Department submitted that provisions of section 6(2)(b) of CGST Act would not be attracted firstly because the investigation of the DGGI DZU is not only on the same subje ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e with Act and to ensure a deterrent procedure to avoid evasion of tax. It is with such basic intentions, offences under the Act have been made compoundable. Moreover provisions of Section 6(2)(b) of the Act required to be interpreted with that object. It can never be the intention of the law that in respect of one subject matter of alleged availing of ITC on the basis of fake invoices for a particular period, there can be action initiated by different units under the Act. It appears from the documents annexed with bail applications that Gurgaon Zonal unit of DGGI first initiated the action for alleged availing of ITC whereas the firm was registered under State of UP for the purpose of GST. Thereafter State GST unit started the action and thereafter present proceedings have been initiated by Delhi Zonal Unit of DGGI. I find that such action is against the spirit of CGST Act. 13. Sr. Standing Counsel for the Department relied upon the judgment of Allahabad High Court in matter of M/s G.K. Trading company (supra). Even in that matter it is in para 14, Hon ble Allahabad High Court has observed as Thus the phrase subject-matter or the phrase on the same subject-matter used in s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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