Smt. Jyosnaben Vs State of Gujarat & Ors. (Gujarat High Court)
FIR proceedings for non-payment of tax dues stayed on grounds of inordinate delay; simultaneous invocation of Sections 406 and 420 IPC held impermissible: Gujarat HC
The Sales Tax Department filed FIR with Valsad Police Station against directors of the company for failure to pay VAT dues of over Rs.180 crores. FIR was lodged under section 406, 420 of Indian Penal Code read with section 85(1)(d), 85(1)(g) and section 86(1) and (2) of the Gujarat Value Added Tax Act. A quashing petition was filed under section 482 of the Cr. P. C. seeking quashing of the FIR.
The Hon’ble Gujarat High Court admitted the petiton and stayed the proceedings pursuant to the FIR. It noted that the FIR has been filed belatedly (in February, 2021) for non payment of taxes from 2009 to 2013. In the FIR, the company was not arraigned as a party. Finally, notes decision of the Supreme Court in case Delhi Race Club to hold that section 420 and 406 cannot be invoked simultaneously.
Argued by Adv. Bharat Raichandani i/b UBR Legal.
FULL TEXT OF THE JUDGMENT/ORDER OF GUJARAT HIGH COURT
1. Learned advocate Mr.Bharat Raichandani submits that the impugned FIR was registered on 05.02.2021 for the offence period starting from 01.01.2009 to 31.12.2013. It is submitted by learned advocate that though it is alleged in the FIR that the present applicants who are Directors of Flareum Solar Technology Pvt.Ltd. did not pay the tax required under the Gujarat Value Added Tax Act, 2003. However, the company was not arraigned as accused.
