The Allahabad High Court has directed Amazing Security Services Pvt Ltd to file a bail application before the trial court in a case where criminal proceedings were initiated against them related to Goods and Services Tax ( GST ).
The applicant-company Amazing Security Services Pvt Ltd filed an application under Section 482 of the Criminal Procedure Code ( Cr.P.C .) seeking the quashing of a summoning order dated 21.02.2023, and a subsequent non-bailable warrant issued on 15.05.2024. The proceedings involve allegations under Sections 89 and 83 of the Finance Act, 1944, Section 174 of the Central GST Act, 2017, and Section 9 read with Section 9(AA) of the Central Excise Act, 1944.
The core of the dispute revolves around the tax liability for services provided by the company to educational institutions between April 2014 and June 2017, stated the counsel.
The company’s counsel argued that this period was exempt from service tax for security services provided to educational institutions. Despite participating continuously in proceedings since 2018, and responding to a show cause notice demanding Rs. 6,69,58,967 on 07.11.2019, the company was adjudicated against on 14.01.2020.
Subsequently, the company deposited Rs. 1,03,46,538 under protest and applied for settlement under the ‘Sabka Vikas Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019’, which is still pending.
The counsel Aishwarya Pratap Singh contended that since the dispute pertains to accounting issues and the applicability of the exemption scheme, there is no necessity for the company’s presence on every date. She cited the Supreme Court’s judgment in Sharif Ahmed And Another vs. State of Uttar Pradesh (01.05.2024), referencing Maneka Sanjay Gandhi vs. Rani Jethmalani (1979), which advocated for liberal granting of exemptions from personal appearance.
The High Court bench of Justice Anish Kumar Gupta has directed the company to appear before the trial court within two weeks from the date of the order and apply for bail. On appearance, the trial court was directed to consider the bail application and decide on the company’s request.
Additionally, the court instructed the trial court to proceed with the matter in accordance with law, while the non-bailable warrants issued against the company will be kept in abeyance for two weeks.
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