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TMI Blog2023 (2) TMI 814X X X X Extracts X X X X X X X X Extracts X X X X ..... il, it is appropriate to precisely mention the factual background of matter. DGGI Delhi Zone Unit stated to have gathered intelligence regarding newly registered GSTINs issuing high value e-way bills, in short span of time and passing on fake ITCs, without actual supply of goods. It is stated to be in investigation proceedings it transpired that one firm by name M/s Shankar Trading Company has been main availer of ITC without actual transaction of goods. It was allegedly noticed that main supplier of M/s Hindustan Papers Machinery Industries is M/s Shankar Trading Company. From analysis of inward and outward e-way bills of M/s Shankar Trading Company, it revealed that sales of that firm had suddenly increased from October 2021 to November 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inancial proceeds. It is stated in the reply filed by DGGI that initially assessed quantum of GST evasion to be of Rs.30 crores however with the progress of investigation it swelled to be Rs.47 crores approx. 4. In bail applications of the accused/applicants it is stated that accused Rajiv Chawla has been illegally kept in forcible detention of DGGI on 03.02.2023 and thereafter shown arrested in documents on 04.02.2023. It is submitted that accused/ applicants have never been served with any summons or any notice in the form of Section 41A Cr.P.C. It is stated that when accused were produced before the court of ld. MM on 04.02.2023 it is mentioned in remand papers that accused has already given statement on 03.02.2023. As such accused/ app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ort of his submissions has further relied upon judgments in Arnesh Kumar vs. State of Bihar (2014) 8 SCC 273, Satender Kumar Antil vs. CBI (2022) 10 SCC 51, Siddharth vs. State of U.P. (2022) 1 SCC 676, Gullu's vs. Commissioner 2016 SCC OnLine Del 1552, Digipro Import & Export Pvt. Ltd. vs. Union of India 2017 (350) ELT 145 (Del.), Arnab Manoranjan Goswami vs. State of Maharashtra (2021) 2 SCC 427, Kenapo Textiles Pvt. Ltd. vs. State of Haryana 1991 SCC OnLine P&H 516, Mapsa Tapes Pvt. Ltd. vs. Union of India 2006 (201) ELT 7 (P&H), eBIZ.COM Pvt. Ltd. vs. Union of India 2016 (44) STR 526 (Del.), Paramvir Singh Saini vs. Baljit Singh (2021) 1 SCC 184, Avesh Afroz Lokhandwala vs. State of Gujarat 2022 SCC OnLine Guj 942 and Upendra Badarji Ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any vs. Union of India (Writ Tax No.666/2020 decided on 02.12.2020) (para 18). 11. Having considered the submissions and taking note of all the facts and circumstances, it is matter of record as is reflected from the documents annexed with bail applications of accused/ applicants that the firm M/s Hindustan Papers Machinery Industries firstly received summons from Sr. Intelligence Officers of Gurgaon Zonal Unit of DGGI as is reflected from summons dated 02.11.2021 and summons dated 19.10.2022 in respect of alleged availing of ITC as one enquiry/investigation was initiated. Similarly same firm i.e. M/s Hindustan Papers Machinery Industries has again received summons from UP State GST on 03.06.2022, 13.06.2022, 04.07.2022, 27.07.2022 (copy o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with such basic intentions, offences under the Act have been made compoundable. Moreover provisions of Section 6(2)(b) of the Act required to be interpreted with that object. It can never be the intention of the law that in respect of one subject matter of alleged availing of ITC on the basis of fake invoices for a particular period, there can be action initiated by different units under the Act. It appears from the documents annexed with bail applications that Gurgaon Zonal unit of DGGI first initiated the action for alleged availing of ITC whereas the firm was registered under State of UP for the purpose of GST. Thereafter State GST unit started the action and thereafter present proceedings have been initiated by Delhi Zonal Unit of DGGI. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s were taken may be subject to jurisdiction of State GST or not. Moreover accused/applicant Rajiv Chawla has deposited sum of Rs.50 lacs with Gurgaon Zonal Unit of DGGI where proceeding/ investigation is already pending. In such circumstances to my mind, when the said firm was registered under UP State GST, the present action taken by DGGI DZU is the misuse of provisions of the Act. Reference can also be made to judgment in case of Kenapo Textiles' case (supra) as well as judgment in Digipro Import & Export's case (supra) and Arnab Manoranjan Goswami's case (supra). 15. Even otherwise in facts of present matter, I find that personal liberty of accused persons cannot be deprived only on the ground that some other persons, who may be require ..... X X X X Extracts X X X X X X X X Extracts X X X X
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