Kshitij Ghildiyal Vs Director General of GST Intelligence (Delhi High Court)
Delhi High Court held that arrest of petitioner involved in availment of input tax credit against fake invoice illegal and set aside the remand order since various discrepancies were noticed in arrest procedure followed by the department.
Facts- Petitioner is currently a Director of M/s Wee-Pro Resource Recovery Solutions Private Limited carrying the business of e-waste management. On 28th November 2024, respondent authorities carried out a search u/s. 67, CGST Act at the Company’s principal place of business at Gautam Buddha Nagar and UPSIDC Industrial Area, Gopalpur, Sikandrabad, District Bulandshahr, Uttar Pradesh. Allegedly, unaccounted stock was seized.
Thereafter, petitioner was taken in his own car from premises of the Company, accompanied by the officers of the respondent, to the respondent’s office located at Dwarka at around 1600 hours and was illegally detained there, without reason or information. His mobility was restricted, and he was not allowed to leave the premises of the respondent; his phone was also cloned at respondent’s premises without his consent.
On the intervening night of 29th and 30th November 2024, petitioner was arrested. Allegations pertained to availing Input Tax Credit amounting to Rs. 10,76,99,292/- by procuring fake invoices without actual supply of goods through the firms operated by co-accused Shri Ayyub Malik in contravention of Section 132(1)(c), CGST Act. On 30th November 2024, petitioner was produced before the Chief Judicial Magistrate (Special Court), Patiala House Court, New Delhi along with a remand application seeking 14 days’ judicial custody. The CJM disposed of the remand application granting 13 days’ judicial custody.
