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Telangana HC denies Anticipatory Bail for Directors of TEPL for not paying GST to various Taxable Services without Raising Invoices [Read Order]

By Fathima Nihala -

The Telangana High Court has denied Anticipatory bail for directors of Transworld Educare Private Limited (TEPL) for providing taxable services without raising invoices for the services rendered by them to the various service recipients and is not paying appropriate GST.

The petitioners are the Directors of M/s. Transworld Educare Private Limited. The Intelligence developed by the officers of the Warangal Regional Unit revealed that TEPL is providing taxable services i.e., consultation services without raising invoices for the services rendered by them and also not paying appropriate GST on the consideration received towards the provision of taxable services, resulting in loss of revenue to the government exchequer.

Accordingly, an investigation was initiated against TEPL and some incriminating documents were recovered under panchanama dated 06.01.2020 and the statement of David Koil Pillai (A-1) Chairman and CEO of TEPL.

On scrutiny of the documents resumed and the voluntary statement was given by A-1 reveals that the TEPL is indulging in evasion of GST on the taxable services provided by them during the period from 7/2007 to 12/2019 without raising any Invoices for the taxable services rendered.

During the said period, TEPL evaded an amount of Rs.11,80,95,716/- towards GST by not raising any invoice/bill and by suppressing the details in the returns filed for the taxable services rendered by them to various service recipients and caused loss to the Government exchequer.

During the course of an investigation and as per the statement of A-1, it is revealed that A-1 is managing entire affairs of the organization and he is responsible for evasion of GST on the taxable services provided by them without issuing any invoices.

Further, he had deliberately evaded GST without raising invoices/bills resulting in huge loss to the Government.

The single bench judge, Justice G. Sridevi while dismissing the Anticipatory Bail petition observed that the Department is still conducting further investigation with regard to the offence committed by TEPL, in which the petitioners are Directors.

The court further said 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.

To Read the full text of the Order CLICK HERE