Case Law Details

Case Name : Chahya Devi Vs State of U.P. (Meerut District Court)
Appeal Number : Bail application No. 824 & Computer Registration No. 950 of 2021
Date of Judgement/Order : 05/02/2021
Related Assessment Year :
Courts : District Court (23)

Chahya Devi Vs State of U.P. (Meerut District Court)

The present bail application has been moved by accused Mrs. Chahya Devi wife of Vijay Kumar Arya, proprietor M/S. Prabhat Zarda Factory (Oversease) R/0 J­16 Sector ­11] Noida 2012301 in case no. 167 of 2020 under Section 132(1)(a) 132 (1) (b) read with Section 132 (1) (i) of the Central Goods and Services Tax Act, at Police Station CGST Noida.

The facts giving rise to the case are that on 28­10­2020 a search was conducted at M/S Prabhat Zarda Factory E­37 Sector­8 Noida, M/s Maharashtra freight carriers (P) Ltd Godown situated Khasra no. 49­50 gali no. 13 Sirsapur Delhi and M/S Maha laxmi Transport /Freight movers 356 Alipur village Delhi 110036 by the department of CGST Noida and during the search physical stock taking of finished goods and raw material lying in premises in presence of Shri Sanjiv Kumar General Manager, and Shri Ganesh Gupta Account Manager. Hence, duty/GST and other taxes on shortage detected in factory premises of M/S Prabhat Zarda Factory Overseas E­37 Sector­8, Noida Rs. 8,37,818/­ are due, duty/GST and other taxes on goods seized at M/S Maharashtara Frieght Carriers (p) ltd. Rs. 3,03,44,221/­ are due, duty GST and other taxes on goods seized at M/S Mahalaxmi Transport Rs. 81,76,666/­ are due, duty/GST and other taxes quantified on the basis of dispatch slips recovered from the factory premises for the period 12­-10-­2020 to 27-­10­-2020 Rs. 9,39,32,695/­ are due and duty/GST and other taxes quantified on the basis of stock register maintained by M/S Maharashtra Freight Carriers (P) Ltd. Rs. 43,10,71,333/­ are due and thus total Rs. 56,43,62,733/­ are due. Thus Mrs. Chahya Devi may be put under arrest for free and fair investigation of the case. Accordingly, he was place under arrest by the authorized officer and she has been explain the grounds of her arrest. He was also informed her right to have someone informed about her arrest.

In bail application the learned counsel for the accused/applicant has submitted that the applicant has deep root in society. The applicant arbitrarily was arrested by the respondent authority without any legal basis. The applicant is proprietor of Firm M/S Prabhat Zarda Factory Overseas. The applicant’s firm has already deposited part of the GSDT amount “under protest” amounting Rs. 8,37,819/­ on 23­-11-­2020, amount of Rs. 25 lacs on 25­-11-­2020 an amount of Rs. 10 lacs on 04-­12-­2020 and an amount of s. 10 lacs on 14-­01-­2021 total amount 53,37,819/­. Total duty amount due which according to the respondent authority was to the tune of Rs. 3.85 Crore and suddenly jumped to an imaginary higher figure to launch the present prosecution against the applicant. The applicant was arrested on 19­-01­-2021 by the respondent authority. The allegation leveled against the applicant has been manufactured only for bringing the allegations within the four corners of criminal offence. The applicants firm has already deposited part of the alleged liability arising of GST amount. In any event, the applicant is just proprietor of the firm and never looked after the affairs of the Company which was run under the control and supervision of Mr. Sanjiv Kumar, the General Manager who was the day to day in­charge of the affairs. No incriminating document or unaccounted cash, any loose papers/slips or any other kind of incriminating material was found during search. It has also been further submitted by the learned counsel for the applicant that applicant was arrested only because declined to pay any amount towards GST without adjudication of any demand against him. In the present matter there is no first information report or complaint, hence the custody of the applicant is illegal. The learned counsel for the applicant has also cited so many case laws in bail application. Hence prayed for bail.

Per contra the special prosecutor for the department has opposed the bail application and has argued that the applicant/accused has committed an offence which is cognizable and non­bailable. There is no provision in the Act according to which the accused can be arrested only after conclusion of the adjudication proceedings and filed detail objection and contended that On 28­-10-­2020 a search was conducted at M/S Prabhat Zarda factory overseas, M/s Maharashtra freight carriers (P) Ltd. and M/S Maha laxmi Transport /Freight movers and during the search physical stock taking of finished goods and raw material lying in premises in presence of Shri Sanjiv Kumar General Manager, and Shri Ganesh Gupta Account Manager. Hence, duty/GST and other taxes on shortage detected in factory premises of M/S Prabhat Zarda Factory Overseas E­37 Sector­8, Noida Rs. 8,37,818/­ are due, duty/GST and other taxes on goods seized at M/S Maharashtara Frieght Carriers (p) ltd. Rs. 3,03,44,221/­ are due, duty GST and other taxes on goods seized at M/S Mahalaxmi Transport Rs. 81,76,666/­ are due, duty/GST and other taxes quantified on the basis of dispatch slips recovered from the factory premises for the period 12­-10­-2020 to 27­-10-­2020 Rs. 9,39,32,695/­ are due and duty/GST and other taxes quantified on the basis of stock register maintained by M/S Maharashtra Freight Carriers (P) Ltd. Rs. 43,10,71,333/­ are due and thus total Rs. 56,43,62,733/­ are due. Mrs. Chahya Devi may be put under arrest for free and fair investigation of the case. Accordingly, he was place under arrest by the authorized officer and she has been explain the grounds of her arrest. He was also informed her right to have someone informed about her arrest. The learned special prosecutor for the respondent has also cited so many case laws in objection against bail application. Hence a prayer has been made for rejection of bail application.

I have heard the Special prosecutor Shri Lakshay Kumar Singh for the department and the learned counsel Shri Raj Kamal for the accused/applicant at length and perused the record.

On 28­-10-­2020 a search was conducted at M/S Prabhat Zarda Overseas, M/s Maharashtra freight carriers (P) Ltd. and M/S Maha laxmi Transport /Freight movers and during the search physical stock taking of finished goods and raw material lying in premises in presence of Shri Sanjiv Kumar General Manager, and Shri Ganesh Gupta Account Manager. During search it has been found that duty/GST and other taxes on shortage detected in factory premises of M/S Prabhat Zarda Factory Overseas E­37 Sector­8, Noida Rs. 8,37,818/­ are due, duty/GST and other taxes on goods seized at M/S Maharashtara Freight Carriers (p) ltd. Rs. 3,03,44,221/­ are due, duty GST and other taxes on goods seized at M/S Mahalaxmi Transport Rs. 81,76,666/­ are due, duty/GST and other taxes quantified on the basis of dispatch slips recovered from the factory premises for the period 12-­10-­2020 to 27­-10-­2020 Rs. 9,39,32,695/­ are due and duty/GST and other taxes quantified on the basis of stock register maintained by M/S Maharashtra Freight Carriers (P) Ltd. Rs. 43,10,71,333/­ are due and thus total duty/GDT of Rs. 56,43,62,733/­ are due. The applicant is sole proprietor of her firm and responsible for every act of his firm. Suffice to say prima­facie, the accused has committed an economic offence and caused monetary loss to the State which is most harmful.

Keeping in view the facts and circumstance of the case and the gravity and seriousness of the offence, without making any comment upon the merits of the case, I do not find it a fit case for bail. Hence, the bail application is liable to be rejected.

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