2022 (2) TMI 194 - HC - GST

Seeking permission to travel abroad for business work - issuance of directions to Respondent to return the passport - availment of fake input tax credit - violation of the provisions of Section 76 (for not paying the amount of tax to the Government though collected) punishable under Section 132(1), (c), (d), (f) of Central Goods and Service Tax Act, 2017 - HELD THAT - The Petitioner may be required to visit foreign countries for attending the conferences as a part of his business curriculum. What the Court is required to ascertain is that whether he is likely to return to India or not? Considering the property details and family details furnished by the Petitioner, the Petitioner is unlikely to stay of out of India. So also conditions put by us will protect the interest of Respondents. The prayer is allowed subject to conditions raised - application allowed.

Summary

Issues:
Accused of tax violation under CGST Act - Seeking permission to travel abroad.

Analysis:
The judgment involves the accused facing charges under the Central Goods and Service Tax Act, 2017 for not paying the collected tax to the Government, along with other serious allegations. The accused was arrested and later released on bail with certain conditions, including depositing the passport before the Court. The accused filed an application seeking permission to travel abroad for business purposes and to have the passport returned. The Court considered the seriousness of the offence and the necessity of the accused's presence in India before granting permission for foreign travel.

The accused was alleged to have collected taxes from customers but failed to deposit them with the Government, resulting in a substantial amount owed. Additionally, ineligible input tax credit and fictitious transactions were uncovered during the investigation, further complicating the case. The accused's lack of cooperation during the investigation and the significant amount involved in the alleged fraud were highlighted by the Respondents. The accused's arrest and subsequent release on bail were also detailed in the judgment.

The Court, after reviewing the records and considering the details provided by the accused regarding family and property ownership, concluded that the accused may need to travel abroad for business purposes. However, the Court imposed several conditions to ensure the accused's return to India and protect the interests of the Respondents. These conditions included providing details of immovable properties, restrictions on property transactions, and timely communication of travel plans to the authorities. The judgment outlined specific directives regarding the return of the passport, communication during foreign visits, and the submission of necessary affidavits.

In conclusion, the Court allowed the accused's application to travel abroad for business work but imposed strict conditions to guarantee the accused's return to India and compliance with the legal proceedings. The judgment balanced the accused's business requirements with the seriousness of the alleged offence and the need to safeguard the interests of the Respondents.