Samarpan Jain Vs State of U.P. And 2 Others (Allahabad High Court)
In, the Allahabad High Court allowed a writ petition filed by an advocate challenging an FIR, charge-sheet, and cognizance order arising out of GST proceedings connected with his client. The petitioner, an advocate specializing in indirect taxes, direct taxes, and corporate laws, had been engaged by a registered dealer to file statutory appeals under Section 107 of the GST Act against assessment orders imposing substantial tax, interest, and penalty liabilities. Acting on behalf of his client, the petitioner filed online appeals and utilized the client’s Electronic Credit Ledger and Input Tax Credit for making the mandatory 10% pre-deposit, relying upon a CBIC circular dated 06.07.2022 and the Gujarat High Court decision in M/s Yasho Industries Ltd., later upheld by the Supreme Court.
Subsequently, the Appellate Authority questioned the maintainability of the appeals, holding that payment of pre-deposit through Input Tax Credit was not acceptable. The appeals were dismissed on that ground. Thereafter, instead of proceeding only against the assessee for recovery of tax dues, the Deputy Commissioner, GST lodged an FIR against both the assessee and the petitioner-advocate, alleging conspiracy, GST evasion, and financial loss to the State exchequer arising from the mode adopted for making the pre-deposit.
