2021 (10) TMI 180 - DSC - GST

GST tax evasion - all the four Commissionrates from CGST are attempting to pass on the buck to SGST - HELD THAT - From the replies filed today on behalf of CGST, a very sorry state of affairs is revealed. Evidently, as per the claim of CGST, SGST is not even aware of the correct address of the CGST offices. The court is in pain to observe that instead of initiating an appropriate action against the delinquent firms in the matter, wherein as per the claim of Delhi Police, a tax evasion of ₹ 940 crores is involved, the authorities are involved in the blame game. Unfortunately, none is present on behalf of SGST and even no reply has been filed on behalf of Chairperson, CBIC - Commissioner, SGST is directed to file an affidavit regarding the action initiated by SGST in the instant matter. At the request of Ld. SPP for CGST, put up on 05.10.2021 for filing reply on behalf of Chairperson, CBIC and Commissioner, SGST and for further proceedings in the instant matter.

Summary

Issues: Lack of action against delinquent firms, blame game between CGST and SGST, tax evasion of ?940 crores, absence of SGST representation, filing of replies by different CGST Commissionrates.

The judgment delivered by District/Sessions Court Patiala House Courts highlighted the concerning lack of action against delinquent firms involved in a tax evasion case amounting to ?940 crores. The court observed a blame game between the Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) authorities. Despite SGST's claim of initiating actions against some firms and employees, CGST failed to act against the remaining 202 out of 486 firms. The court expressed disappointment over the sorry state of affairs revealed in the replies filed by CGST, indicating a lack of coordination and communication between the two tax authorities.

Moreover, the absence of SGST representation during the proceedings was noted with regret. The court emphasized the need for appropriate actions against the delinquent firms instead of engaging in blame-shifting. The court directed the Commissioner of SGST to file an affidavit detailing the actions taken by SGST in the matter. Additionally, a copy of the court's order was to be served to the Commissioner of SGST through various channels for prompt action and awareness.

Furthermore, the court acknowledged the submission by the Senior Public Prosecutor (SPP) representing CGST regarding the filing of a reply on behalf of the Chairperson, Central Board of Indirect Taxes and Customs (CBIC), within four working days. The court scheduled the next hearing for filing replies on behalf of the Chairperson, CBIC, and Commissioner, SGST, on 05.10.2021 for further proceedings in the case. The judgment underscored the necessity for both CGST and SGST authorities to collaborate effectively and take decisive actions to address the significant tax evasion issue at hand.