9911796707
TMI Blog2022 (9) TMI 1150X X X X Extracts X X X X X X X X Extracts X X X X ..... t: "Present application has been filed on behalf of the Petitioner seeking partial modification of the order dated 21st April, 2022 passed by this Court in the present matter. Learned senior counsel for the Applicant-Petitioner states that the Petitioner has been complying with the conditions laid down by this Court in the order dated 21st April, 2022. He also states that the Petitioner has filed an affidavit of compliance. He states that in the regular course of business, the Petitioner has been receiving orders from its customers (primarily being Indian telecom service providers) for purchase of telecom equipment/services in terms of the customer contracts, which require the Petitioner to import equipment and spare parts from its overseas suppliers. He further states that these orders are placed pursuant to long term contracts of the Petitioner and the Petitioner is under contractual and legal obligation to fulfil these orders. Learned senior counsel for the Petitioner states that even though the Petitioner is required to place orders on the overseas suppliers for import of the equipment, on account of condition (iii) of the Order dated 21st April, 2022 imposed by this Cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ishnan Industries vs. State of Himachal Pradesh, 2021 (48) GSTL 113 (SC) and followed by several High Courts in the context of similar provisions. e. The onus is on the Respondents to establish that such measures under Section 132 (9B) of the Act are proportionate and are required to protect the interest of revenue. The onus has not been discharged at all in the present case. f. The allegation of non-submission of records is contrary to the record and is refuted by the Petitioners. They rely upon detailed lists of the documents and information submitted to the Respondents during and after the search. g. The Petitioner has also undertaken to file a summary of the payments to be made and will further furnish the same before this Hon'ble Court on periodical basis. h. It was further submitted that while the Petitioner will be deeply prejudiced if the above referred modification is not allowed, no prejudice will be caused to the Respondents inasmuch as, the interest of the revenue to the extent of Rs. 100 crores is already secured. Further, a refund of Rs.29,76,90,160/- is also pending with the Respondents. Thus, it was submitted that no prejudice will be caused to the Responden ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of accounts submitted by the petitioner before various authorities and the books of accounts to be constructed, based on the ERP data dump seized during search, which will have a bearing on the profit margin calculation for the telecom/relevant segment, which in turn would affect the arm's length price determination for the international transactions relating to imports of products by the petitioner from its associated enterprises. It was proposed that to facilitate business of the petitioner, circulating funds of Rs.300 crores may be allowed to the petitioner. The payments may be made by the Petitioner in the first instance to its associated parties and imported products be received in India, the products be then sold and funds received as realization of sale proceeds, upon which funds of Rs.300 crores may be paid again and the cycle can be repeated. For such a course of action, however, it was proposed that the petitioner may be required to provide security for a minimum sum of Rs.350 crores. d. If the petitioner insists on complete removal of restriction on foreign payments, then suitable security-corresponding to tax on addition amount of Rs.2300 crores (Rs 1000 crores on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing disposed of and accordingly the previous orders dated 21st April, 2022 stands modified to the following extent: - (i) In addition to the Fixed Deposit Receipt of Rs. 100 crores which was directed to be made by order dated 21st April, 2022, the Petitioner shall prepare another Fixed Deposit Receipt of Rs.100 crores in Axis Bank Account No. 919020017328222, which shall be renewed automatically from time to time. A photocopy of the said FDR shall be filed with the Assessing Officer within a week. The Banker is also directed to ensure that the Petitioner and/or any of its officials/nominees/authorised representatives do not deal with the FDR in any manner. There shall be a lien in favour of the Department with respect to both the FDRs till conclusion of the assessment proceedings and thereafter the amount will be dealt in accordance with law. The Bankers will issue a letter to the AO acknowledging the lien in favour of the Department (ii) The Respondents are directed not to release any refund [which is stated to be to the tune of Rs.30 crores (approx.)] to the Petitioner till the assessment proceedings are completed and thereafter the refund shall be dealt with in accordance wi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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