Delhi HC says entire concept of GST getting defeated by Input Tax Credit

Team SoOLEGAL 10 Dec 2020 3:21pm

Delhi HC says entire concept of GST getting defeated by Input Tax Credit

On Wednesday, 9th December, 2020, Delhi High Court was hearing a plea which was filed by a businessman, in which the petitioner had asked for protection from arrest in a case where Input Tax Credit was illegally availed. Justice Manmohan and Justice Sanjeev Narula were hearing the plea and were of the view that, the input tax credit is defeating the entire concept of GST. The vires of various provisions of Central Goods and Service Tax Act, 2017, had also been challenged by the petitioner.

The Court had held that, the premises of the petitioner must be searched and after the search a panchnama shall be prepared and premises must be sealed. The Court had directed the petitioner to appear before the Deputy Director CGST on 11th December, 2020 and the petitioner shall continue to appear as ordered by the Deputy Director until the next date of the hearing of the applicant.

Arun Gupta, Director of Transline Technologies Pvt Ltd is the petitioner in this particular case. The petitioner had challenged Section 69 and Section 132 of Central Goods and Service Tax Act, 2017, and said that it is violating Article 21 of Constitution of India hence it is unconstitutional. The petitioner had also asked for directions to the respondents to comply with the procedure mentioned under Chapter XII of Code of Criminal Procedure, 1973 along with other sections such as Section 154, 157, 167, 172 etc of the said Code for a valid initiation of an investigation process of any offence.

The Council of the petitioner had argued that, the GST officials had examined and also sealed the petitioner’s house. The petitioner is not an escapee and he is ready to give access to everything which will be required for this particular investigation. According to the petitioner, Section 100 of Code of Criminal Procedure, 1973 states that, for a valid search, two responsible people from the locality must be present, and also there is no search and seizure rule mentioned under GST.

 The Court had granted the petitioner protection from arrest till the next date of hearing which is on 23rd December, 2020, and also directed him to cooperate with the investigation process.

Tagged: Delhi HC   GST   Justice Manmohan   Justice Sanjeev Narula   Service Tax Act   Article 21   Constitution of India   Criminal Procedure  
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