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TMI Blog2020 (7) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... t orders dated 05th March, 2020 as well as corrigendum dated 01st June, 2020 alive after specifying that the reason for attachment was that proceeding under Section 67 of Central Goods and Service Tax Act (hereinafter referred to as "CGST Act") was pending against the petitioner. However, the respondent No.1 accepted the fact that it should not conduct parallel investigation and accordingly, the respondent No.1 handed over its investigation to Directorate General of Goods and Services Tax Intelligence (for short "DGGI") who had been investigating the matter since 05th December, 2018. The relevant portion of the impugned order reads as under:- "1.3 Searches were also conducted in the registered premises of 8 input suppliers of M/s WMSPL wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , they were not being used by the registered suppliers of M/s WMSPL. Hence, it is evidence that the above mentioned 8 suppliers were created solely for the purpose of passing on fake ITC. 1.5 Further, Shri Gulzar, Manager (IR & Compliance) at M/s Watermelon Management Services Private Limited in his statement recorded on 04.03.2020 under Section 70 of the CGST Act, 2017 stated that the company had never received any services from the above mentioned firms. 1.6 During investigation it was also found that another company by the name of M/s Watermelon HR Services Private Limited (Part of Watermelon group) also appeared to have availed fake ITC of approx. Rs. 2,04,82,938/- from the same non-existent suppliers that are suspected to have prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the company were provisionally attached on 05.03.2020 under Section 83 of the CGST Act, 2017 to safeguard Government revenue. This was done on the basic of ample evidence that the company h ad fraudulently availed ITC on the basis of fake input invoices and that ITC had been used to discharge their tax liability. Section 83 (1) reads as follows: Where during the pendency of any proceedings under section 62 or section 63 or section 64 or section 67 or section 73 or section 74, the Commissioner is of the opinion that for the purpose of protecting the interest of the Government revenue, it is necessary so to do, he may, by order in writing attach provisionally any property, including bank account, belonging to the taxable person in such ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for wrong availment/mis-utilization of ITC and tax collected but not deposited, Bank accounts of the company were provisionally attached by this office during the course of investigation under Section 83 of CGST Act, 2017. M/s Orion Security Solutions Private Limited filed the writ petition for de freezing of provisionally attached Bank accounts. The Hon'ble Delhi High Court via order dated 16.03.2020 disposed the said writ petition and held that the accounts be de-freezed only after the party committed to deposit the entire GST liability within a specified time frame. This office was able to recover revenue of approx. Rs. 28 crore in that particular case on orders of the Hon;ble High Court. 4.5 The company has been operating from unregi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... directed officers of the DGGI and the Commissioner of CGST, Delhi (East) to appear before this Court. 6. Today, both the officers who appeared in person via video link in unison state that their investigations show that prima facie there has been wrongful availment of ITC by the petitioner. Officer from the DGGI office states that though fifteen summons had been issued to the Director of the petitioner, yet he had appeared only on three occasions and that too did not furnish the documents as asked for. 7. In rejoinder, learned counsel for the petitioner states that documents in three tempos have been filed by the petitioner with the DGGI. 8. Keeping in view the serious allegations that have been levelled against the petitioner by the off ..... X X X X Extracts X X X X X X X X Extracts X X X X
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