9911796707
TMI Blog2023 (10) TMI 411X X X X Extracts X X X X X X X X Extracts X X X X ..... Credit to the tune of Rs. 7.74 Crores is attributed to M/s. Sunshine Traders, the order of restoration of the registration does bear upon the Respondent s case against the applicants. Secondly, the applicants have appeared before the Investigating Officer, as directed. As many as seven statements of the applicant No. 1 have been recorded. Relevant documents appear to have been collected. It cannot be, thus, urged that the applicants have not co-operated with the investigation. As the applicants have been protected since December 2022 and the sustainability of allegation of wrongful availment of Input Tax credit in respect of a major component (Rs. 7.74 Crores) become debatable, at this length of time, no custodial interrogation of the appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2017, and thereby committed offences punishable under Section 132 (1)(b) (c), read with Clause (i) of the CGST Act, 2017. 4. The Applicants had initially approached this Court in ABA No. 2644 of 2022. By an order dated 7 December 2022 the Respondents were directed to give 72 hours notice in the event the Investigating Officer considered it necessary to arrest the Applicants. The Applicants were also directed to appear before the Respondents on the dates specified in paragraph No. 8 of the said order. 5. It appears that the applicants did appear before the Investigating Officer and the statements of the applicants were also recorded. Eventually, vide notice dated 23 December 2022, the applicants were informed that the investigation revealed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iled the input tax credit from the suppliers whose registration had already been cancelled. The major supplier is shown to be one, Mr. Nirakar Pradhan, proprietor of M/s. Sunshine Traders, from whom the applicants had allegedly availed and utilized Input Tax Credit to the tune of Rs. 7.74 Crores. 10. Mr. Raichandani would urge that this Court in Writ Petition No. 2534 of 2023 preferred by Mr. Nirakar Pradhan by an order dated 11 September 2023 had quashed and set aside the order of cancellation of registration of M/s. Sunshine Traders. Therefore, a major component of the alleged wrongful availment of Input Tax Credit cannot now be pressed into service against the applicants. Mr. Raichandani would urge that the alleged wrongful availment of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . I have perused the aforesaid orders. In the backdrop of the allegations of creating fake entities to avail Input Tax Credit, without actual supply of goods, this Court has declined to exercise the discretion in favour of the applicants in the aforesaid cases. However, the case at hand stands on a different footing for a significant development in the intervening period. 14. The gravamen of indictment against the applicants is that the applicant No. 2 operates M/s. Sunshine Traders, though Mr. Pradhan is shown to be the proprietor thereof. The applicants had availed and utilized Input Tax Credit to the tune of Rs. 7.74 Crores from M/s. Sunshine Traders, whose registration had been cancelled by the Department. 15. In substance, the allegati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... came to be cancelled by an order dated 11 November 2022 retrospectively with effect from 26 November 2020. Prima facie, it cannot be urged that M/s. Sunshine was non-existent during the period the applicants allegedly availed Input Tax Credit. 20. Mr. Mishra submitted that the Division Bench has clarified that the revenue is not precluded from issuing any fresh order to suspend the registration of Mr. Pradhan, nor from exercising any other powers as may be available to the Respondents. Mr. Mishra attempted to salvage the position by canvassing a submission that the Division Bench had quashed and set aside the order of cancellation of registration for not adhering to the principles of natural justice and, therefore, the applicants cannot dr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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