SC dismisses relief on arrest in cases on GST evasion

Last Updated: Tue, May 28, 2019 10:54 hrs
37 returns instead of 13—And other challenges threatening July 1 GST rollout

New Delhi: In a big relief for the Government, the Supreme Court on Monday dismissed a bunch of petitions, challenging power to arrest in cases under GST evasion. Matters involved allegations of evading GST by circular trading and claiming input tax credit (ITC) through fake invoices.

The petitioners had moved the apex court challenging the Telangana High Court verdict that a person can be arrested by the concerned authority in cases of Goods and Service Tax (GST) evasion.

The petitions were listed for hearing before a vacation bench comprising the Chief Justice Ranjan Gogoi and Justice Aniruddha Bose. The court after hearing the initial arguments said it is not willing to interfere with the April 18 judgement of the high court.

"Upon perusing the relevant material, we are not inclined to interfere. The special leave petition is accordingly dismissed. Pending interlocutory applications, if any, shall stand disposed of," the court said in its order.

The Telangana High Court in its order on April 18, said that it is not willing to grant any relief against arrest to the petitioners in light of summons issued by Superintendent (anti-evasion) of the Hyderabad GST Commissionerate under the Central Goods and Services Tax Act, 2017.

The court did not entertain their plea challenging the summons.

The government informed the court that petitioners have allegedly 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 goods.

It was alleged that Rs 224.05 crore fraudulent input tax credit has been claimed by these companies. The batch of petitions was filed by some private companies, their top officials and others.