J.Ayesha v. The Supt Of Gst, Chennai,
IN THE HIGH COURT OF JUDICATURE AT MADRAS
( Criminal Jurisdiction ) Monday, the Nineteenth day of April Two Thousand Twenty One PRESENT The Hon`ble Mr Justice M.DHANDAPANI CRIMINAL ORIGINAL PETITION No.19220 of 2020 1 J.AYESHA [ PETITIONERS / ACCUSED ] 2 A.MOHAMMED JUNAID Vs STATE REP. BY.
[ RESPONDENT ] THE SUPERINTENDENT OF GST & CENTRAL EXERCISE, CHENNAI NORTH COMMISSIONER,ANTI-EVASION SECTION, ROOM NO.308, 3RD FLOOR,ANNEX BUILDING, GST BHAVAN, NO.28/1, M.G.ROAD, NUNGAMBAKKAM,CHENNAI-600 034. (CRIME NO. NOT KNOWN OF 2020] For Petitioner : M/S J.KATHER HUSSAIN Advocate For Respondent : MR.M.VENKATESWARAN SPECIAL PUBLIC PROSECUTOR FOR GST CASES PETITION FOR ANTICIPATORY BAIL Under Sec. 438 Cr.P.C. ORDER : The Court Made the following order :- The petitioners, who apprehend arrest at the hands of the respondent police for the alleged offences punishable under Sections 174 and 175 of IPC r/w 193, IPC under Section 69 & 79 of GST Act,, in F,No.GEXCOM/AE/INV/GST/1180/2020-AE-O/o Pr.Commr-CGST-Ch(N), seek anticipatory bail.
2.The case of the prosecution is that the petitioners have floated 50 fake companies including a company owned by one Maria Glinden Prabhu and passed an ineligible credit to the tune of Rs.14.15 Crores, thereby committed an offence under Section 132(1)(b) and (c ) of CGST Act, 2017. Hence, the case came to be registered. 3.The learned counsel appearing for the petitioners submit that the petitioners are only owning seven companies and the remaining 43 companies was not owned by them, without giving any such opportunity of hearing a false case has been registered against the petitioners. He would further submit that this Court by an order dated 16.03.2021 directed the petitioners to appear before the respondent police and produce all the documents to establish their contentions. He would
further submit that the petitioners are regularly appearing before the respondent police. Hence, he prays for grant of anticipatory bail to the petitioners.
4.The learned Special Public Prosecutor (for Chennai North GST and Central Excise) have filed a counter affidavit in paragraphs 2, 3, 4, 7, 8 and 10 extracted hereunder:- ''2. Mr. Maria Glinden Prabhu in his voluntary statement dated 06.10.2020 before Range Officer, Dindigul deposed that during March 2018, he worked as driver to Mr. I.K. Khader Feroze, Chennai and his personal documents viz. Aadhar Card, PAN Card, Photo, Bank pass book Cell Number were collected by Mr.I.K.Khader Feroze, and GST registration number 33BHDPJ7870A1ZN was obtained in his name and residential address at No. 3/147, Velakannipuram, Chettiyapatti, Dindigul; that Mr. I.K. Khader Feroze issued fake invoices/bills without actual purchase and supply of goods; that Mr.I.K Khader Feroze obtained second GST registration number 33BHDPJ7870A2ZM at Chennai in the name of Lion Traders without his knowledge; that by using the same documents, Mr.I.K.Khader Feroze obtained third GST registration number 33BHDPJ7870A3ZL in the name of MM Traders in his residential address without his knowledge.
3. In order to investigate further, statement of Mr.Maria Glinden Prabhu was recorded on 19.11.2020 as per provisions under Sec 70 of CGST Act, 2017 wherein inter alia stated that Mr.A. Mohammed Junaid is Brother-in-Law of Mr.I.K.Khader Feroze and he is the mastermind behind floating of fake companies. He stated that several fake companies are floated by Mr. A. Mohammed Junaid by using documents of various persons and Mrs.S.Bhanumathy, Tax Consultant, used to file returns of some of the companies.
4. It is gathered from the investigation done by this office the following companies have been floated by Mr.A.Mohammed Junaid: 1.
33AUAPB0146J1ZA SVN LEATHERS VISWANATHAN BHANU MATHY 2.
33ALVPM3029P1ZG N.R.TRADERS PALANI MUTHUKUMARAN 3.
33AQOPN3144Q2Z9 THASLIMA LEATHERS MOHAMMED ALI HUSSAIN NAZEER 4.
33AAOPI4208C2Z5 ELITE ENTERPRISES KADER ISMAIL 5.
33CFDPM0423H1ZY TIRUCHENDUR MURUGAN AGENCIES VEERAPPAN MURUGAN 6.
33BHDPJ7870A3ZL M.M.TRADERS MARIA GLINDEN PRABHU
7.
33DGKPS0284K1Z0 S.S.TANNERS KANNNAN SURESH 8.
33BHWPA2678G1Z5 FAKRU & SONS FAKRUDEEN AZARUDEEN 9.
33ELRPM4554H2ZO SK AGENCIES MOHAMED BILAL 10.
33AHQPD5495D1ZA F.S.ENTERPRISES DHANASEKARAN 11.
33BQLPM1523Q1ZI K.N.F. LEATHERS MOHAMMED IQBAL MOHAMMED SHAFEEQUE 12.
33BLLPS9011C1Z8 H H TRADERS RAJARATHINAM SUBRAMANIAN 13.
33EMTPM3275E2ZQ S K I M LEATHERS MOHAMED ILYAS 14.
33BEJPN5071E1ZM HRM EXPORTS NIJAMDEEN 15.
33CGIPS6284G1Z0 SRI DURGAI AMMAN HP GAS GRAMIN VITRAK SENTHILKUMAR 16.
33AAOPI4208C3Z4 LEATHER PARK KADER ISMAIL 17.
33BHDPJ7870A1ZN AJ TRADERS MARIA GLINDEN PRABHU JOHN PETER 18.
33BHDPJ7870A2ZM LION TRADERS MARIA GLINDEN PRABHU JOHN PETER 19.
33ELRPM4554H1ZP S K B LEATHERS MOHAMED BILAL 20.
33BQLPM1523Q2ZH ALIF TRADERS MOHAMMED IQBAL MOHAMMED SHAFEEQUE 21.
33BQLPM1523Q3ZG S. N.K. TRADERS MOHAMMED IQBAL MOHAMMED SHAFEEQUE 22.
33EMTPM3275E1ZR SKI AGENCES MOHAMMED ILYAS 23.
33CRGPB6145Q1ZJ GOLDCREST SHAKIR SHAFFI BASHA 24.
33LBNPS5447J1ZU RAJALI & CO SELVAM 25.
33HXLPK2289G1Z4 NANDU LEATHERS VADIVEL KRISHNAMOORTHI 26.
33ANCPB6748F1ZB SB ENTERPRISES SEKAR BHARATHI 27.
33CDAPS6625Q3ZY YESKAY ENTERPRISES PARAMASIVAM SURESH 28.
33APJPM8175J2ZE AIM TNTERNATIONAL MOHAMED SHAKIR 29.
33CDVPS7585L1ZC JAYASRI TRADERS NATARJAN SETTU 30.
33AADPF3884A2Z7 IK LEATHER EXPORTS IBRAHIM KHALIFULLA KHADER FEROZE 31.
33ARZPS7420E1ZE ARSHIYA TRADING & CO SYED ISMAYIL
32.
33CGGPA7919C1ZS AYYATHUNAI LORRY SERVICE GURUVAIAH ANGAIAH 33.
33ADJPC2782M1ZF CHANDRASEKAR ENTERPRISES CHANDRASEKAR 34.
33AYDPA0819L3ZQ A.K ENTERPRISES YOUSUFF ABDULKHADAR 35.
33CPEPB6865F1Z1 NISHA TRADERS RAJASEKARAN BASKARAN 36.
33AEGPT3431G1ZO FARAH GARMENTS MOHIDEEN THAJUDEEN 37.
33AZXPP9551B1ZX ELITE FEET RAMABHADRARAJU PRAKASH 38.
33CTYPA2217G1ZU A.S.TRADERS ASHRAF ALI ABDUL AZEEM 39.
33AJQPA6647J1ZZ DHANISH ENTERPRISES BASHA MOHIDEEN ASAD MOHIDEEN 40.
33CDAPS6625Q2ZZ YESKAY TRADERS PARAMASIVAM SURESH 41.
33AYDPA0819L4ZP AK ENTERPRISES YOUSUFF ABDULKHADAR 42.
33BUBPA3541A1ZN MUTHIBA TRADERS VELLORE SAIBAN ASKARALI 43.
33BSBPN0329K1ZX NOOR TRADERS USAIN MOHAMED NOOR MOHAMED SAIT 44.
33CPEPB6865F2Z0 BASKAR ENTERPRISES RAJASEKARAN BASKARAN 45.
33CUXPK2011G2ZQ TK OVERSEAS AHAMED RAWTHER KAMARUDEEN 46.
33ILUPS9221J1Z9 K.M.S TRADERS SULTANA 47.
33AADPF3884A1Z8 NEW SKYMOON TRADERSS FEROZEIBRAHIMKHALI FULLA KHADER 48.
33AYDPA0819L1ZS MARVA TANNERS YOUSUFFABDULKHADAR 49.
33AYDPA0819L2ZR MARVA TANNERS YOUSUFFABDULKHADAR 50.
33BYBPJ6676HIZA GOBRA ENTERPRISES JOHN NEPOLEAN
7. In Para 5, the Petitioners create an impression that violation done by them is of calculation or clerical errors in returns filing; however it is evident from the statement dated 19.11.2020 of Mr.Maria Glinden Prabhu that Mr.A.Mohammed Junaid has floated various fake companies and issued invoices without actual supply of goods and passed on ineligible Input Tax Credit. It shows that it is a clear pattern of Bill Trading and the preliminary
quantification of the case involving the Petitioner works out to GST evasion of Rs.14.15 Crores.
8. The averment of the Petitioners that a raid was carried out while these petitioners were away from Dindigul and their house was broken open and many articles, jewels, documents were seized by the officers of the respondent is not correct as the officers of GST entered the farm house namely M/s A J Farms Bathalagundu Road, Vakkampatti, Panjampatti Perivu, Dindigul, Tamil Nadu with authorization for search (FORM INS-01) issued by the Joint Commissioner, Chennai North Commissionerate under Sec 67(2) of CGST Act, 2017. The officers of GST showed authorization for search to Mr Antony Raja Arokiyam, who introduced himself as owner of the said premises and he acknowledged by seeing the authorization for search.
On the reasonable belief that incriminating documents were secreted inside the house, the officers with the assistance of Mr Antony Raja Arokiyam, and two independent witnesses a detailed search was conducted and found certain incriminating documents, Laptop, Tab and seized it and mentioned in a Mahazar dated 20.11.2020 which was drawn on the spot. It is submitted that no other records or things were seized other than listed in Mahazar and a copy of Mahazar was also served to Mr Antony Raja Arokiyam under dated acknowledgment. It is reiterated that no jewellery was seized during the said procedure.
10. It is most humbly submitted that at the time of introduction of Goods and Service Tax with effect from 01.07.2017, new registrants were issued registration certificates based on the information and self-declaration made by them on the GST Common Portal without physical verification of their business premises and stock of the goods in hand. The above said facility was created by the Government of India for smooth functioning of business of the tax payers with good faith. This facilitation is being misused by the many persons to generate ineligible Input Tax Credit by creating fake companies and fake transactions and it is submitted that the petitioner, along with his accomplices, appears to be deeply involved in such fake invoice racket. It is submitted that these acts are creating a huge loss to the exchequer and preliminary quantification of the case involving the Petitioner worked out to GST evasion of Rs.14.15 Crore approximately.''
5.Considering the fact that the allegation against the petitioners owned 50 companies in which the petitioners are only owning seven companies and the remaining 43 companies was not owned by them and the investigation is pending and the huge amount of transaction is involved to a tune of Rs.14.15 Crores, this Court is not inclined to grant anticipatory bail to the petitioners.
6.Accordingly, this Criminal Original Petition is dismissed. -sd/- 19/04/2021 This order, on being produced, be punctually observed and carried into execution by all concerned TRUE COPY Sub-Assistant Registrar (Statistics/C.S.) High Court, Madras - 600 104.
TO 1 THE SUPT OF GST, CHENNAI, CENTRAL EXERCISE,CHENNAI NORTH COMMISSIONER,ANTI-EVASION SECTION, ANNEX BUILDING,GST BHAVAN, NO.28/1, M.G.ROAD, NUNGAMBAKKAM.
2 THE SPECIAL PUBLIC PROSECUTOR FOR GST CASES,HIGH COURT, MADRAS.
CC to M/S J.KATHER HUSSAIN Advocate on payment of necessary charges CRL OP.19220/2020 Date :19/04/2021 RVR 07/05/2021