Up to date: December 8, 2020 5:31:08 am
A Surat-based businessman accused of fraudulently claiming enter tax credit score beneath the Items and Companies Tax (GST) was granted momentary aid by the Gujarat Excessive Court docket on December 2 after it emerged that the state and Centre have been conducting parallel investigation beneath
their respective Acts for a similar offence.
The court docket directed that there shall be no additional proceedings with regard to the grievance filed by the central authority.
The accused, Rajesh Mundra, was arrested by the state tax unit of state GST (SGST) in February this 12 months beneath acceptable provisions of the SGST Actfor allegedly working as many as 14 pretend companies to say enter tax credit score (ITC), and was launched on bail later.
In June, the Central GST unit (CGST) filed a grievance for a similar offence, accusing Mundra of organising as many as 33 pretend companies. Mundra was arrested a second time, this time primarily based on the CGST unit’s grievance, though he was launched days later.
Represented by advocates Vishal Dave, Avinash Poddar and Nipun Singhvi, Mundra moved the Gujarat HC, in search of quashing of the CGST unit’s grievance. He contended that the central authority registering a second grievance for a similar offence as registered by the state
authority quantities to double jeopardy and quantities to parallel investigation, which isn’t permissible beneath the provisions of CGST Act, provided that proceedings have already been initiated beneath SGST Act.
Aside from quashing of the CGST grievance, Mundra has additionally sought a compensation of Rs 50 lakh.
The court docket of Justice Paresh Upadhyay issued discover to the respondent authorities of state and Centre and granted interim aid that no proceedings shall be taken in opposition to Mundra with respect to the CGST’s grievance. The matter has been stored for additional listening to in January 2021.
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