Abdul Shaji VS Commissioner of Central Tax and Central Excise

The summary outlines a legal case involving an applicant facing potential arrest for alleged non-payment of Goods and Services Tax (GST) amounting to Rs 17.53 Crores, and failure to file GSTR 3B returns from October onwards. The proceedings were initiated by the Head Quarters, Anti-Evasion Unit of Cochin Commissionerate against M/s A.R. Agencies located in Eyyal, Thrissur. The proprietor of the agency, Shri. Rajoob P.A, and his primary associate, Shri. Abdul Saleem of Ittonam, Palakkad, were targeted in the investigation. Both individuals were arrested and subsequently remanded to judicial custody following searches conducted at their business and residential premises. Further inquiries were conducted during their custody.

The summary outlines a legal case where an individual, referred to as the applicant, faces potential arrest for alleged non-payment of Goods and Services Tax (GST) amounting to Rs 17.53 Crores, along with the non-filing of GSTR 3B returns from October onwards. The case was initiated against M/s A.R. Agencies, located in Eyyal Thrissur, by the Head Quarters, Anti Evasion Unit of Cochin Commissionerate.

The proprietor of M/s A.R. Agencies, Shri. Rajoob P.A, and his associate, Shri. Abdul Saleem of Ittonam, Palakkad, were arrested and placed in judicial custody following a search of their business and residential premises. During interrogation, Abdul Saleem implicated the applicant, stating that the applicant had access to the GST login credentials of M/s A.R. Agencies and was responsible for filing GSTR-I returns for the agency. Additionally, it was alleged that the applicant had prepared GST invoices totaling Rs. 348.7 crores using the agency’s credentials.

As a result, a search of the applicant’s residence was conducted, leading to the discovery of blank cheques and incriminating documents. Although the applicant was not present during the search, his father was informed, and a summons was subsequently issued to the applicant under Section 70 of the Central Goods and Services Tax (CGST) Act, directing him to appear before the Superintendent of Central.

The summary outlines a legal situation involving an applicant facing potential arrest for alleged non-payment of Goods and Services Tax (GST) amounting to Rs 17.53 Crores and for not filing GSTR 3B returns from October onwards. The proceedings were initiated against M/s A.R. Agencies in Eyyal Thrissur by the Headquarters Anti-Evasion Unit of Cochin Commissionerate. The proprietor of M/s A.R. Agencies, Shri. Rajoob P.A, and his associate, Shri. Abdul Saleem of Ittonam, Palakkad, were arrested and remanded to judicial custody. During questioning, Abdul Saleem implicated the applicant, stating that he had shared the GST login credentials of M/s A.R. Agencies with them, and that the applicant had filed GSTR-I returns for the agency and prepared GST invoices totaling Rs. 348.7 crores using the agency’s credentials.

Subsequently, a search was conducted at the applicant’s residence, resulting in the recovery of incriminating documents and blank cheques. Although the applicant was not present during the search, a summons was sent to him under Section 70 of the CGST Act, directing him to appear before the Superintendent of Central Tax and Central Excise with relevant documents.

The applicant denies any involvement with M/s A.R. Agencies, stating that they do not even know its proprietor, Rajoob. They admit to knowing Abdul Saleem, who visited a supermarket owned by the applicant’s wife and others, which used to engage in arecanut business. However, the applicant claims that their business has since been closed, and they do not have any current business or GST registration. They acknowledge receiving help from Abdul Saleem to procure stocks from their uncle’s shop at Vadakkencheri but deny any further connection.

In essence, the summary presents a legal dispute where the applicant is accused of involvement in GST fraud, while they maintain their innocence and claim no association with the implicated parties or the alleged offenses.

In a legal imbroglio, the applicant faces imminent arrest over allegations of not paying Goods and Services Tax (GST) amounting to Rs 17.53 Crores and failing to file GSTR 3B returns from October onwards. This legal saga unfolds from proceedings initiated against M/s A.R. Agencies, situated in Eyyal Thrissur, by the Anti Evasion Unit of Cochin Commissionerate. The proprietor, Shri. Rajoob P.A, and his associate, Shri. Abdul Saleem of Ittonam, Palakkad, have been arrested and remanded to judicial custody following searches of their business and residential premises.

Abdul Saleem, under questioning, implicated the applicant, asserting that the applicant, who operates ‘PSM Super Market’ in Palakkad District, had access to M/s A.R. Agencies’ GST login credentials. Saleem claimed the applicant filed GSTR-I returns for the agency and fabricated GST invoices worth Rs. 348.7 crores using the agency’s credentials. Consequently, authorities conducted a search at the applicant’s residence, unearthing blank cheques and incriminating documents. Though absent during the search, the applicant’s father was informed, and a summons was issued under Section 70 of the CGST Act, compelling the applicant to appear before the Superintendent of Central Tax and Central Excise with pertinent documents.

The applicant vehemently denies involvement with M/s A.R. Agencies, asserting no acquaintance with its proprietor. He acknowledges familiarity with Abdul Saleem, who visited the PSM Supermarket, a partnership firm owned by the applicant’s wife and others. The applicant, formerly engaged in arecanut business, contends his business has ceased, disavowing any current GST registration. He refutes receiving A.R. Agencies’ login credentials or filing their GST returns. Challenging the legality of the search and the subsequent notice under Section 70, the applicant filed a Writ Petition (W.P(C) 26593/2020) seeking to quash the notice and protesting the illegal search conducted in his absence.

In response, the respondents admitted to conducting the search but failed to specify the nature of the incriminating documents allegedly found. The applicant maintains his innocence, emphasizing his lack of association with A.R. Agencies and inability to produce documents related to their operations. The legal battle thus centers on proving the applicant’s alleged involvement or exonerating him from the accusations levied against him.

The case revolves around allegations of non-payment of Goods and Services Tax (GST) amounting to Rs 17.53 Crores and failure to file GSTR 3B returns from October onwards against M/s A.R. Agencies, Eyyal Thrissur. The proceedings were initiated by the Head Quarters, Anti Evasion Unit of Cochin Commissionerate. The proprietor of the agency, Shri. Rajoob P.A, and his associate, Shri. Abdul Saleem of Ittonam, Palakkad, were arrested and remanded to judicial custody. During questioning, Abdul Saleem implicated the applicant, who operates ‘PSM Super Market’ in Palakkad District, claiming that the applicant had access to M/s A.R. Agencies’ GST login credentials and had filed GSTR-I returns on their behalf, generating GST invoices totaling Rs. 348.7 crores. Consequently, a search was conducted at the applicant’s residence, where incriminating documents were allegedly found.

The applicant denies any involvement with M/s A.R Agencies, asserting unfamiliarity with its proprietor, Rajoob. He acknowledges knowing Abdul Saleem, who had visited his wife’s supermarket, which is owned by a partnership firm. The applicant refutes receiving the login credentials of M/s A.R. Agencies or filing their GST returns, contending that he has no current business operations or GST registration. He had filed a Writ petition to challenge the search conducted in his absence and the notice issued under Section 70 of the CGST Act. The respondents admitted to conducting the search but provided limited details about the incriminating documents discovered.

The applicant seeks anticipatory bail, expressing willingness to cooperate with the investigation but fearing arrest and potential coercion to fabricate evidence. During the hearing, it was noted that there is no legal prohibition under the CGST Act against seeking pre-arrest bail. Economic offenses like tax evasion do not fall under the category of crimes where anticipatory bail is explicitly barred, unlike certain provisions of the SC/ST (Prevention of Atrocities) Act, 1989.

Legal counsels for both parties presented their arguments, and the court examined the records before the hearing concluded.

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