Case Title | TMT Steel Industries P Ltd vs Director General of GST Intelligence, New Delhi |
Court | Telangana High Court |
Honorable Judges | Justice Ujjwal Bhuyan and Justice A. Venkateshwara Reddy |
Citation | 2022 (3) GSTPanacea 100 HC Telangana W.P.A. 11492 of 2022 |
Judgement Date | 4-March-2022 |
Council for Petitioner | Mr. D Prakash Reddy Mr. Naveen Kumar |
Council for UOI | Mr. N. Rajeshwar Rao, Mr. Anurag Ojha |
Council for State |
The Telangna High Court bench of Chief Justice Sh. Ujjwal Bhuyan and Hon’ble Sri Justice A. Venkateshwara Reddy has held that Prime Object of GST Authorities should be recover the legitimate government dues from tax evaders under the provisions of this Act.
FACTS OF THE CASE
The simultaneously raid conducted on the premises of Director of Pvt. Ltd. Company along with one of the proprietor(associate of Pvt. Ltd. Co.) and brother of director having separate business un related to the Pvt. Ltd. Co. And director along with his brother was physically assaulted by the respondent(GST officials) on a suspected tax evasion of Rs. 9.00 crore.
The respondent has issued summon to appear at 00:30 Hrs 12.12.2019 to the Brother of petitioner at Delhi dtd. 11.12.2019.
The writ petition was filed by petitioners (Director and his brother) to the court seeking relief from physical assault and detainment of improper time of enquiry.
Petitioner stated and established being a highest tax payer in the statement during the relevant previous year seeking relief and deposited the 4.10 crore tax of alleged evasion by filing memo to seek the relief of arrest and detention by respondent ( GST officials) so that they can prove that there is no evasion made by the petitioner.
Respondent counters the petition by filing common counter affidavit on the ground of non -maintainability of writ and conduct of petitioners. The learned counsel of petitioners referred section 107(6) of CGST Act, and submits that a person aggrieved by an order passed by adjudicating authority may refer appeal to appellate authority by complying the two pre conditions-
1. That appellant should pay entire amount of tax, interest etc. Relatable to the impugned order and is admitted by him,
2. He should pay a sum equal to 10% of disputed tax evasion.
(Referred to interim order of SC SLP 6834 of 2019, C Pradeep vs Comm. Of GST and Central Excise, Selam)
COURT HELD
The court constrained to observe that the possibility of the use of violence by Officers cannot be ruled out. The summon issued under section 70 of CGST Act, 2o17to the petitioner also prima facia indicates that it was issued after the mid night on intervening the night of 11.12.2019 and 12.12.2019 to appear at ungodly hours 00:30 hrs., and what was so important which cannot wait till morning. Court is unable to accept the explanation offered by respondent to justify the timing of summon. Detention of one respondent to another respondent premises till after late mid night is not a routine thing and it is the violation of liberty of petitioner as per art. 22/21 constitution of India. GST officials(respondent) cannot contend that they will interrogate the suspect as per their sweet by forcibly keeping the custody of petitioner for indefinite period referring to the judgement by Gujrat high Court in Jignesh Kishorabhai Vs State of Gujrat 2017.
Court has passed the transfer order of respondent no 2(GST Official) with immediate effect and another official to be designated in place
Any interrogation by respondent or authority to petitioner and their employees shall be between 10:30 to 5:00 pm on week days only in a visible range only by his advocate but no in audible range.
Writ petition accordingly disposed of, and there shall be no order as to cost
ANALYSIS OF THE JUDGEMENT
Any tax payer cannot be harassed mentally or physically by GST officers on the ground of mere suspect of evasion, they can be detained or arrested only after prior approval of Principal Commissioner as per Section 69 of the CGST Act, 2017 only when the officer evidential believes that there is a tax evasion.
Also subject to section 107(6) of CGST Act, 2017 any person who is aggrieved by any order passed by adjudicating authority may appeal to higher authority seeking relief as defendant.
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