Dharmendra Agarwal Vs Union of India And 2 Ors (Gauhati High court)
Gauhati High Court held that arrest of accused involved in evasion of GST by falsely claiming ITC during investigation without any reason to believe that accused will abscond or disobey summons not justified. Accordingly, accused released on interim bail.
Facts- This writ petition is directed against the proceedings initiated against the petitioner u/s. 132(1) (c) of the Central Goods and Services Tax, (CGST) Act, 2017 as well as the subsequent arrest of the petitioner who has been detained custody since 12.12.2024.
It is submitted that there is an allegation against the petitioner for evasion of GST by falsely claiming ITC (Input Tax Credit) to the tune of Rs. 9,11,87,126/- as alleged by the respondent authorities. The quantum of demand has not yet been assessed by the authorities. The amount specified by the respondent authorities is only an assumption based on their investigation so far. It is submitted that though there is a power of the detention u/s. 69 of the GST Act, considering the investigations undertaken and in view of the fact that the actual quantum of demand has not been determined till date, the assessments not having been finalized, the detention of the petitioner was uncalled for and therefore, the impugned order of the detention is required to be set aside and quashed.
