Case Law Details
State Vs Mohit Maan (Patiala House Court)
Patiala House Court observed blame game by GST authorities in Tax Evasion Case of Rs. 940 Crore
In State v. Mohit Maan [FIR No. 301/2020 dated September 29, 2021] the Honorable Patiala House Court sought a response from Central Board of Indirect Taxes and Customs (CBIC) for not initiating appropriate action against delinquent firms involved in Goods and Services Tax (GST) evasion worth Rupees 940 Crores.
The Assistant Commissioner appeared on behalf of State Goods and Services Tax (SGST) and has claimed that they have already initiated action at their end not only against the delinquent firms but also against their employees. However, the Assistant Commissioner has categorically insisted that information was duly shared by them with the Central Goods and Services Tax (CGST) and yet the CGST Authorities was not inclined to initiate any action against the remaining 202 firms out of 486 firms.
The Honorable Patiala House Court said that from the replies filed on behalf of the CGST Dept, a very sorry state of affairs is revealed. Evidently, as per the claim of the CGST Dept, the SGST Dept is not even aware of the correct address of the CGST offices.
“The Court is in pain to observe that instead of initiating appropriate action against the delinquent firms in the matter, wherein as per the claim of Delhi Police, a tax evasion of Rs.940 crores is involved, the authorities are involved in the blame game. Unfortunately, none is present on behalf of SGST and even no reply has been filed on behalf of Chairperson, CBIC,” the Court while expressing its dissatisfaction said.
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TEXT OF THE ORDER OF PATIALA HOUSE COURT
Four separate replies have been filed on behalf of CGST, East, South, West and North.
Apparently, in the replies, all the four Commissionrates from CGST are attempting to pass on the buck to SGST.
On the last date of hearing, Ms. Laxmi Awasthi, Assistant Commissioner appeared on behalf of SGST and she has claimed that they have already initiated action at their end not only against the delinquent firms but also against their employees. However, she has categorically insisted that information was duly shared by them with CGST and yet CGST was not inclined to initiate any action against the remaining 202 firms out of 486 firms.
From the replies filed today on behalf of CGST, a very sorry state of affairs is revealed. Evidently, as per the claim of CGST, SGST is not even aware of the correct address of the CGST offices.
Regretfully, none is present today on behalf of SGST.
The court is in pain to observe that instead of initiating an appropriate action against the delinquent firms in the matter, wherein as per the claim of Delhi Police, a tax evasion of Rs.940 crores is involved, the authorities are involved in the blame game. Unfortunately, none is present on behalf of SGST and even no reply has been filed on behalf of Chairperson, CBIC.
Ld. SPP submits that a reply shall be filed on behalf of the Chairperson, CBIC within four working days.
Accordingly, Commissioner, SGST is directed to file an affidavit regarding the action initiated by SGST in the instant matter. Copy of the instant order be served upon
Commissioner, SGST through the court as well as through the concerned 10 as well as through Special Messenger.
At the request of Ld. SPP for CGST, put up on 05.10.2021 for filing reply on behalf of Chairperson, CBIC and Commissioner, SGST and for further proceedings in the instant matter.
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