Observing that the charge-sheet had been filed and the maximum punishment under Section 132 was five years, the Court granted bail. It relied on Supreme Court precedent emphasizing that prolonged incarceration and documentary evidence weigh in favour of release.
llegations of forged invoices and wrongful ITC claims did not justify custodial interrogation. The court extended anticipatory bail with strict conditions.
Madhya Pradesh High Court grants anticipatory bail in fraudulent GST ITC case, holding custodial interrogation unnecessary and detention harmful to business.
The court upheld higher VAT by classifying woollen felt components as machinery parts, holding that their exclusive industrial use outweighed textile-based definitions.
The High Court examined whether a prolonged delay in filing VAT appeals could be condoned. Holding that the appellants failed to explain their inaction for nearly six years, the Court dismissed both the delay applications and the appeals.
The Madhya Pradesh High Court held that income disclosed under the VDIS does not prevent tax authorities from scrutinising returns where material shows higher undisclosed income. Immunity under the Scheme applies only to the income actually declared.
The High Court held that failure to grant a personal hearing before passing an adverse GST order violates Section 75(4), rendering the demand invalid.
The Court set aside cancellation of GST registration after finding that it was based solely on an invalid field visit report without witnesses or proper procedure. The ruling emphasizes that unilateral inspections cannot justify cancellation.
The Court refused to quash a detailed GST show-cause notice, holding that the purchaser must participate in adjudication over alleged fraudulent ITC claims.
Issue: No correction made despite ample opportunity. Ruling: Penalty confirmed. Takeaway: Timely rectification is critical to claim bona fide mistake.
