2021 (1) TMI 893 - HC - GST

Fraudulent CENVAT credit - section 174 of the Central Goods and Services Tax Act, 2017 - HELD THAT - Direction that that till the next date Shri. Ashok G. Rajani and Shri. Amrit Rajani shall not be taken into custody on the basis of the show cause-cum-demand notice dated 30.12.2020 as well as in connection with the ongoing investigation under the CGST Act subject to compliance with the above condition. Status-quo order passed yesterday would stand modified accordingly - Stand over to 04.02.2021.

Summary

Issues involved:
Prayer against apprehended arrest under the Central Goods and Services Tax Act, 2017 (CGST Act) based on a show-cause notice.

Detailed Analysis:

1. Consideration of Prayer against Apprehended Arrest:
- The petitioners had multiple prayers in two writ petitions, but the court focused on the prayer against apprehended arrest under the CGST Act.
- The show-cause notice dated 30.12.2020 alleged fraudulent CENVAT credit under the Central Excise Act, 1944, and mentioned the necessity of custodial interrogation.
- The respondent's counsel confirmed that there was no apprehension for arrest under the Central Excise Act, as the investigation was complete. However, the investigation under the CGST Act was ongoing.
- The senior citizen petitioner was willing to cooperate with the investigation, while the other petitioner agreed to appear before the investigating authority as required.

2. Court's Decision and Directions:
- After hearing both parties, the court emphasized the importance of cooperation with the investigation for the petitioners' benefit.
- The court directed that the petitioners should not be taken into custody based on the show-cause notice dated 30.12.2020 or in connection with the ongoing investigation under the CGST Act until the next date, subject to their compliance with the directive.
- The court modified the status-quo order passed earlier accordingly.
- The petitioners were allowed to amend the writ petitions to include any subsequent developments, and the respondents were directed to file a reply affidavit.
- The matter was adjourned to 04.02.2021, and both interim applications were disposed of.

This detailed analysis of the judgment highlights the court's considerations regarding the apprehended arrest under the CGST Act, the parties' positions, the importance of cooperation with the investigation, and the court's directives and decisions to ensure fair proceedings in the case.