11Patiala Court sought response on the non-initiation of action against firms evading GST from CBIC

In State v. Mohit Maan [FIR No. 301/2020 dated September 29, 2021] the Honorable Patiala House Court sought a response from Central Board of Indirect Taxes and Customs (“the CBIC”) for not initiating appropriate action against delinquent firms involved in Goods and Services Tax (GST) evasion worth Rupees 940 Crores.

The Assistant Commissioner appeared on behalf of State Goods and Services Tax (SGST) and has claimed that they have already initiated action at their end not only against the delinquent firms but also against their employees. However, the Assistant Commissioner has categorically insisted that information was duly shared by them with the Central Goods and Services Tax (CGST) and yet the CGST Authorities was not inclined to initiate any action against the remaining 202 firms out of 486 firms.

The Honorable Patiala House Court said that from the replies filed on behalf of the CGST Dept, a very sorry state of affairs is revealed. Evidently, as per the claim of the CGST Dept, the SGST Dept is not even aware of the correct address of the CGST offices.

“The Court is in pain to observe that instead of initiating appropriate action against the delinquent firms in the matter, wherein as per the claim of Delhi Police, a tax evasion of Rs.940 crores is involved, the authorities are involved in the blame game. Unfortunately, none is present on behalf of SGST and even no reply has been filed on behalf of Chairperson, CBIC,” the Court while expressing its dissatisfaction said.

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