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TMI Blog2020 (3) TMI 513X X X X Extracts X X X X X X X X Extracts X X X X ..... simha Sharma, learned Special Public Prosecutor, appearing for the respondent. 3. The case of the prosecution is that the petitioners are the Directors of M/s. Transworld Educare Private Limited (hereinafter referred to as "TEPL"). The Intelligence developed by the officers of the Warangal Regional Unit revealed that TEPL is providing taxable services i.e., consultation services without raising invoices for the services rendered by them and also not paying appropriate GST on the consideration received towards provision of taxable services, resulting in loss of revenue to the government exchequer. Accordingly, investigation was initiated against TEPL and some incriminating documents were recovered under panchanama dated 06.01.2020 and the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the entire operation and running of the TEPL company was looked after by A-1, the petitioners were not even aware about the activities being run by A-1, they are only Directors and that they are nothing to do with the said offence. It is also submitted that the petitioners received summons under Section 70 of the CGST Act, 2017 calling upon them to appear before the respondent authority and that they are apprehending that they would be falsely implicated in the above crime by using coercive measures to extract confession. 5. Sri B.Narasimha Sharma, learned Special Public Prosecutor, appearing for the respondent filed counter opposing the application and it is contended that the petitioners are the Directors of TEPL and they were summ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and (c) of sub- Section (1) of Section 132 of the CGST Act. The prosecutions for these offences do not depend upon the completion of assessment. Therefore, the argument that there cannot be an arrest even before adjudication or assessment, does not appeal to us. 54. (2) Under the third proviso to sub-Section (1) of 138, compounding can be allowed only after making payment of tax, interest and penalty involved in such cases. Today, the wrongful ITC allegedly passed on by the petitioners, according to the Department is to the tune of Rs. 225 Crores. Therefore, we do not think that even if we allow the petitioners to apply for compounding, they may have a meeting point with the Department as the liability arising out of the alleged actions on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and in view of the fact that the Department is still conducting further investigation with regard to the offence committed by TEPL, in which the petitioners are Directors and that there is specific allegation that TEPL is providing taxable services without raising invoices for the services rendered by them to the various service recipients and is not paying appropriate GST on the consideration received towards provision of taxable services, resulting in loss of Rs. 11,80,95,716/- to the Government exchequer, I am of the considered opinion that this is not a fit case to grant anticipatory bail to the petitioners and that the prayer for grant of anticipatory bail is rejected.
8. Accordingly, the Criminal Petition is dismissed. X X X X Extracts X X X X X X X X Extracts X X X X
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