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TMI Blog2021 (9) TMI 936X X X X Extracts X X X X X X X X Extracts X X X X ..... abad, District- Meerut, under Sections 132(1)(B) and 132(1)(i) Central Goods and Services Act, 2017 (hereinafter referred to as "the CGST Act" ). Complainant in the present case on investigation found huge evasion of GST against the applicant and during the course of investigation, it was found that the applicant is responsible for the creation and management of 47 fake firms which were involved in passing of fake ITC to various firms to the tune of around 159 crore, hence, the Principal Commissioner, CGST and Central Excise Commissionerate, Ghaziabad authorized the complainant to arrest the applicant under Section 69 of Central Goods and Excise Act for committing offence specified in clause (a) or clause (b) or clause (c) or clause (d) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t them. It is also contended that before proceeding under Section 132 of the CGST Act, 2017 at least the show cause notice and the adjudication order needs to be passed and the power to punish under Section 132 of the Act would stand triggered only once it is established that an assessee has committed an offence and that would be only after once the demand has been determined from the assessee under Section 73 or 74 of the CGST Act, 2017. In support of his submission, he has relied upon the judgement of the Delhi High Court in the case as (2016) 96 VST 37 (Delhi) Trip (India) Pvt. Ltd. vs. Union of India and others. Several other submissions in order to demonstrate the falsity of the allegations made against the applicant have also been pla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oned therein. It is further contended that scrutiny of the retrieved data from the tally software, ledgers, mobile date was conducted by DGGI. On scrutiny, it was observed that the input tax credit of Rs. 159.29 crores had been passed on through these 47 firms leading to wrongful availment or utilization of input tax credit. Applicant also tendered that whatever invoices had been issued were for the purpose of passing of fake GST credit to the persons who purchase those bills and that he was unable to deposit the GST as he had worked on commission basis and no real business was ever done by him. it is further submitted that all the fake firms were verified physically as well as under the summons mode which led to the conclusion that these ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l for the applicant has raised various issues, the same are being dealt with only for the purpose of deciding the bail application. Applicant was called in the office of DGG Ghaziabd and he was served upon the summons and his statement was recorded on the same day and the investigation report put up before the competent authority. He has submitted that in the instant case, G.S.T. evasion of more than Rs. 159 crores is involved. It is a cognizable and non-bailable offence as per Section 132 (1) (i) of the C.G.S.T. Act, 2017 r/w Section 132 (5) of the C.G.S.T. Act. It is also relevant to mention that Section 69 of CGST Act empowers the Commissioner to authorize any Officer of central tax to arrest a person, if the Commissioner has reasons to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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