Chartered Accountant
Bookmark and Share
click here to subscribe our newsletter
 
 
Corporate News *   CBIC issues draft rules for Customs valuation *  Top Headlines: Threshold for Benami deals, green bond investors, and more *  Govt aims 1-hour clearance for goods at all ports *  Exporters Allowed To Use RoDTEP, RoSCTL Scrips To Pay Customs Duty, Transfer Them; Rules Amended *  Millions of labourers to be affected by brick producers’ strike over hike in GST, coal rates *  Inauguration of ‘kendriya GST parisar’ *  Transporter can seek Release of Conveyance alone, not Goods under GST Act: Madras HC *  GST: Quoting of DIN Mandatory for Responding to Notice, Govt Modifies Portal *  Firms can soon file claims for GST credits of ?400 cr *  CBIC issues modalities for filing transitional credit under GST. *  Mumbai: Man creates 36 fake GST firms, arrested for input tax credit fraud of Rs 23 cr *  Report to restructure Commerce Ministry under study; idea is to set up trade promotion body: Goyal *  Firms can soon file claims for GST credits of ?400 cr *  Gambling Alert! Govt May Levy Up To 28% GST; UP, Bengal Back Move *  EPFO backs raising retirement age to ease pressure on pension funds *  India Moving Up Power Scale, Set to Become Third Largest Economy By 2030 *  Airfares Get Expensive: What Changes for Flyers From Today? *  IRCTC Latest News: Passengers to Pay More For Cancelling Confirmed Rail Tickets Soon. *  IBC prevails over Customs Act, says Supreme Court. *  As GST enters sixth year, a time for evaluation and reassessment *  There’s GST on daily essentials as Centre needs money to buy MLAs: Arvind Kejriwal *  Now, GST on cancellation of confirmed train tickets, hotel bookings *  GST kitty for top States could rise 20% in FY23, says Crisil *  French customs officials seize another cargo vessel over Russia sanctions *  TradeLens builds on Asia momentum with Pakistan Customs deal *  Hike tax on tobacco, reduce affordability & increase revenue: Civil society organizations to GST council *  Bihar: ?10 crore tax evasion on tobacco products detected in raids *  Centre failed on GST, COVID; would it be anti-national? Rajan on Infosys row *  Service Tax not Chargeable on Income Tax TDS portion paid by recipient: CESTAT grants relief to TVS *  Foreign portfolio investors make net investment of Rs 7575cr in Sep so far
Subject News *  Run-up to Budget: Monetary threshold for GST offences may rise to Rs 25 cr *   GST (Tax) E-invoice Must For Businesses With Over Rs 5 Crore Annual Turnover *   Both Central GST and excise duty can be imposed on tobacco, rules Karnataka high court *   CBIC Issues Clarification On Extended Timelines For GST Compliance *   CBIC Issues Clarification On Extended Timelines For GST Compliance *  Budget 2023- 9.6 crore gas connections *  GST: Tamil Nadu Issues Instructions for Assessment and Adjudication Proceedings *  GST: CBIC Extends Last Date for filing of ITC *  GST collection in September surpasses Rs 1.4 lakh crore for straight seventh time *  Dollar smuggling case: Customs chargesheet names M Sivasankar as key conspirator. *  Hike in GST rates fuels inflation *  Assam: CBI arrests GST commissioner in Guwahati *  GST fraud worth ?824cr by 15 insurance Cos detected *  India proposes 15% customs duties on 22 items imported from UK *  Decriminalising certain offences under GST on cards *  Surge in GST collections more due to higher inflation: India Ratings *  MNRE Notifies BCD and Hike in GST Rates as ‘Change in Law’ Events But With a Condition | Mercom India *   Solar projects awarded before customs duty change allowed cost pass-through *  Rajasthan High Court Dismisses Writ Petitions Challenging Levy Of GST On Royalty *   GST revenue in September likely at Rs 1.45 lakh crore *  Govt working on decriminalising certain offences under GST, lower compounding charge *  Building an institution like GST Council takes time, trashing is easy: Sitharaman *  GST collections in Sept may touch ?1.5 lakh crore *  KTR asks Centre to withdraw GST on handlooms *  After Gameskraft, More Online Gaming Startups To Receive GST Tax Claims *  Madras HC: AAR Application Filed Under VAT Does Not Survive After GST Enactment *  Threshold for criminal offences under GST law may be raised *  Bengaluru: Gaming company faces biggest GST notice of Rs 21,000 crore *  CBIC clarifies Classification of Cranes for GST, Customs Duty *  Customs seize gold hidden in bicycle in Kerala airport  

Comments

Print   |    |  Comment

GST Update No. 304 on bail granted in case of ongoing investigation proceedings

GST Update No. 304 on bail granted in case of ongoing investigation proceedings
It is well known principle that the primary objective of bail is to secure the presence of accused at the time of trial or hearing. The action of arrest is to be taken under extreme circumstances as it restricts the freedom of the accused which is the fundamental right of any citizen. It is pertinent to note here that a person should be taken into custody only if there are reasons to believe that they might flee or tamper with the evidence. However, it seems that the revenue authorities have failed to understand this concept and hence, they are not wiling to grant bails easily to the accused. Recently, on similar note, one case was reported before Gujarat High Court in the case of MUNAVVER ISMAIL MEMON V/S STATE OF GUJARAT. The decision imparted in this case is subject matter of discussion of our present update.
The applicant was arrested as on 24.03.2022 and was produced before Metropolitan Magistrate Court on the same day. The bail application filed was rejected vide orders dated 20.06.2022 and 20.07.2022. Being aggrieved by the same, this Writ application is filed. The applicant is proprietor engaged in the business of cosmetic items. The firm was under investigation based on the intelligence reports stating that the applicant was involved in tax evasion activities. It was stated that goods were supplied without issuance of invoice since a software was created by the applicant which was used for tax evasion and showcasing less sales. Further, the applicant has made unaccounted sales and kaccha invoices which were not included in the accounts. It was therefore, alleged that loss of Rs. 10.94 crores were made to the Government Exchequer.
The petitioner submitted that there is no corroborative evidence found during the course of search and therefore the allegations are based on just entries which are made on assumptions and presumptions. Further, the applicant is regular taxpayer and return filer. Therefore, transaction related to sales and purchase are uploaded on the portal. Hence, the custody of applicant is not necessary. It was argued that no show cause notice under Section 61, 73 or 74 have been issued and the applicant is wiling to deposit 10% of the amount within a period of 6 months from date of release before department. It was further argued thatconstitutional right of liberty must be protected, unless further custody of the applicant is necessary as the basic jurisprudence of bail is that bail is a rule and jail is an exception.
The counsel of respondent contended that the applicant has acted contrary to the provisions of the Act. Thus, investigation is going on and therefore, if the applicant is released on bail, the investigation would adversely affect and considering the background facts of the applicant since he can temper with the evidence and influence the witnesses.
The court refereed to the judgement delivered by the Apex Court in the case of P. CHIDAMBARAM VS. DIRECTORATE OF ENFORCEMENT, (2020) 13 SCC 791. Further, it was stated that merely raising the contention that investigation is still going on is not enough. The department should have pointed out that the further custody of the applicant is necessary. It is the right of the assessee to file an appeal against the assessment subject to the pre-deposit amount. Therefore, it was decided to release the applicant on bail subject to certain conditions and on execution of personal bond.
The above decision is a favouring decision for the trade and industry. The Court adopted a liberal approach and granted relief to the taxpayer after acknowledging the repercussions faced by the business houses. It is pertinent to note here that powers of arrest should not be invoked by the departmental officers in routine matter without having any reason to believe that the taxpayer would abscond. Merely having vague belief cannot be considered as a valid ground to compromise with the constitutional right of freedom of any person. The Government should come up with a set of guidelines in this respect to save trade and industry from the wrath of tax officers.
Department News


Query

 
PRADEEP JAIN, F.C.A.

Head Office : -

Address :
"SUGYAN", H - 29, SHASTRI NAGAR, JODHPUR (RAJ.) - 342003

Phone No. :
0291 - 2439496, 0291 - 3258496

Mobile No. :
09314722236

Fax No. :0291 - 2439496


Branch Office : -

Address:
1008, 10th FLOOR, SUKH SAGAR COMPLEX,
NEAR FORTUNE LANDMARK HOTEL, USMANPURA,
ASHRAM ROAD, AHMEDABAD-380013

Phone No. :
079-32999496, 27560043

Mobile No. :
093777659496, 09377649496

E-mail :pradeep@capradeepjain.com