2021 (3) TMI 144 - DSC - GST

Jurisdiction of CMM (MEERUT)(UP) - Investigation were conducted at Gaziabad (UP) by the DGGI - all Firms/Companies which are said to be of accused, are registered in New Delhi - whether the remand of the accused was sent to the appropriate jurisdictional/C.M.M., New Delhi? - HELD THAT - This court does not have jurisdiction over the prima facie case, because the three firms with which the alleged crime is alleged to have been committed by the accused are all firms located and registered in Delhi. This court comes to the conclusion that this court is not found to have jurisdiction in the present case. Remand and other records of accused Daman Thukral should be submitted before the competent jurisdiction court of Ld. C.M.M. Patiala House Court, New Delhi as per procedure - The accused Daman Thukral is detained in the transitory District Prison, Meerut. The department/lnvestigator is ordered to submit an application to the concerned court regarding summoning the accused for advance/ transit of remand. Application disposed off.

Summary

Issues involved:
1. Jurisdiction under Section 179 Cr.P.C.
2. Allegations of passing on Input Tax Credit (ITC) based on fake invoices without supplying goods.
3. Connection of accused with other ongoing investigations.
4. Location and registration of accused's firms.
5. Disposal of application for remand.

Detailed Analysis:
1. Jurisdiction under Section 179 Cr.P.C.:
The accused filed an application under Section 179 Cr.P.C. claiming that the alleged offences were committed in Delhi, where the accused's firms are registered. The Special Public Prosecutor objected, citing ongoing investigations against non-existent firms in Delhi and transactions with entities in Uttar Pradesh. The court noted that the accused's firms were registered in Delhi, and no transactions with entities within its jurisdiction were proven. Consequently, the court concluded it lacked jurisdiction and ordered the transfer of the case to the competent court in New Delhi.

2. Allegations of passing on ITC based on fake invoices:
The prosecution alleged that the accused passed on ITC through fake invoices without supplying goods. The accused's defense emphasized that the transactions with entities in Noida were conducted by a different firm owned by the accused, not the firms in question. The court found no evidence linking the accused's firms to the alleged transactions within its jurisdiction, reinforcing the lack of jurisdiction in the case.

3. Connection of accused with other ongoing investigations:
The prosecution claimed a connection between the accused and other ongoing investigations involving different individuals. However, the court found no substantial evidence or explanation provided by the department to establish this connection. As a result, the court determined that the accused's case was not related to the mentioned investigations, further supporting its decision on jurisdiction.

4. Location and registration of accused's firms:
The accused's firms were registered in Delhi, where the alleged offences were said to have taken place. The court considered this crucial in determining jurisdiction, as no transactions with entities within its jurisdiction were proven. The court's analysis focused on the registration and location of the accused's firms to establish the proper jurisdiction for the case.

5. Disposal of application for remand:
After a thorough examination of the arguments presented by both parties, the court disposed of the application for remand by ordering the transfer of the case to the competent court in New Delhi. The accused was directed to be detained in the transitory District Prison, Meerut, pending the transfer of records and further legal proceedings. The court's decision highlighted the importance of establishing the correct jurisdiction in legal matters to ensure fair and appropriate proceedings.