The Telangana High Court has recently denied anticipatory bail to the co-accused persons of a GST fraud case.
The accused, his wife and son are directors of the Company, Transworld Educare Private Limited. After investigation, the intelligence wing of the department found that the company is providing taxable services i.e., consultation services without raising GST invoices and also not paying appropriate GST on the same resulting in loss of revenue to the government exchequer. It was alleged that the company had been indulged in the suppression of details in the returns filed by them.
On apprehending an arrest by the department for serious violation of GST provisions, the petitioners approached the forum seeking anticipatory bail on the ground that both the petitioners were not even aware of the activities being run by the main accused. They further contended that no offence is made out against the petitioners for the offence under Section 132 of the Central Goods and Services Tax Act.
The Single Bench constituting of J. G. Sri Devi held that due to involvement of specific allegation of the provision of taxable service without raising of invoices and non-payment of GST of Rs 11,80,95,715 on the same, the anticipatory bail cannot be granted to the petitioners.
“In view of the fact that the Department is still conducting further investigation with regard to the offence committed by TEPL, in which the petitioners are Directors and that there is a specific allegation that TEPL is providing taxable services without raising invoices for the services rendered by them to the various service recipients and is not paying appropriate GST on the consideration received towards the provision of taxable services, resulting in loss of Rs.11,80,95,716/- to the Government exchequer, I am of the considered opinion that this is not a fit case to grant anticipatory bail to the petitioners and that the prayer for grant of anticipatory bail is rejected,” the Court said.
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