Supreme Court: Arrest GST Evaders If Required; No Respite For GST Evaders In India

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You need to be scared now if you are a tax evader, as Supreme Court brings in news which is proving out to be a great relief for the Government. The Supreme Court has dismissed a plea against relief provided to GST evaders that was put up against a verdict passed on by the Telangana High Court. It commands that a person can be arrested by the concerned authority in cases of Goods and Service Tax (GST) evasion.

Be Very Scared GST Evaders!

On April 18, the Telangana High Court issued an order saying that it will not entertain any relief against the arrest of the petitioners of GST evasion, as summons issued by Superintendent of Hyderabad GST Commissionerate under the Central GST Act of 2017.

When their plea was dismissed by the High Court, these fraudulent companies went up to the Supreme Court to plea for grant of an over-ruling in the verdict of arresting someone by the concerned authority in cases of GST evasion, given by the Telangana HC.

These petitions were listed for a hearing before a vacation bench, comprising at the moment by the Chief Justice of India Ranjan Gogoi and Justice Aniruddha Bose. The court after hearing the initial arguments and going carefully through the relevant material decalred that it would not interfere with the judgement of the High Court, made as on 18^th April, hence dismissing the case further.

GST Fraud Will Be Stopped

The government informed the court that certain fraudulent companies incorporated various firms in partnership and then on the basis of certain invoices, claimed input tax credit allegedly in the absence of any actual physical receipt depicting the nature of the goods. They have supposedly claimed an amount of about Rs. 224.05 crore.

The challenge was against this action branded punishable by the High Court Superintendent, under the violation of the CGST Act, 2017. The sub Section (1) of Section 69 of CGST Act, 2017, empowers the Commissioner to order the arrest of a person, when such a person is believed to have committed a cognizable and non bailable offence.

We have been accustomed to hearing tax evasion news every day that it has now become so monotonous. With a dismissal of such, news like this lightens that there has been more and more work hemisphered towards the preservation of law in a successive manner.