IMPORTANT POINT
Compliance with summons, payment of GST amount, and abuse of process of law.

JUDGMENT :

SANJAY KUMAR DWIVEDI, J.

1. Both the petitions are identical and both are on the board today and in view of that, both the petitions have been heard together with consent of the parties.

2. Heard Mrs. Shilpi Sandil Gadodia, learned counsel for the petitioners and Mr. P.A.S. Pati, learned counsel for opposite party no. 2. Nobody appears on behalf of the State.

3. In Cr. M.P. No. 2454 of 2019, the Director of M/s. S.S.K. Devcon Private Limited, namely, Satyendra Singh Kushwah is the petitioner and in Cr. M.P. No. 2449 of 2019, the said company is the petitioner.

4. In both the petitions, the prayer is made for quashing the entire criminal proceedings arising out of Complaint Case No. 1880 of 2019, dated 15.04.2019 including the order taking cognizance dated 19.06.2019, whereby, the learned Court has been pleased to take cognizance under Section 174 of the Indian Penal Code, pending in the court of the learned Judicial Magistrate, 1st Class, Ranchi.

5. The complaint case was filed alleging therein that the accused had taken G.S.T. Registration on 14.12.2017 and has been providing various Taxable Services to various Service recipients since December, 2017, but has not made payment of GST from January, 2018 to November, 2018 before initiation of the investigation. It was further alleged that the accused deliberately ignored the summons issued by the Central Goods and Service Tax Department under Section 70 of the Central Goods and Service Tax Act, 2017 (hereinafter to be referred to as ‘the CGST Act 2017’) and did not appear at any date against four summons issued to the accused. It was also alleged that the accused has violated the provisions of Section 70 of the CGST Act and since the accused did not appear against the summons, proceeding under Section 174 of the Indian Penal Code is initiated against the accused person.

6. Mrs. Shilpi Sandil Gadodia, learned counsel appearing for the petitioners submits that pursuant to the complaint case, the learned court has been pleased to take cognizance vide order dated 19.06.2019 under Section 174 of the Indian Penal Code against the said company and its Director. She further submits that although in the complaint, the allegations are made that four summons have been issued against the petitioner-company, but the details of the said summons have not been mentioned in the complaint petition. She submits that the petitioner-company is engaged in providing services for transportation of coal and with the advent of the GST regime, the petitioner obtained registration in respect of its business carried out in the State of Jharkhand. She also submits that for the services provided by the petitioner-company, it raised bills for payment to its clients and the said clients being service recipients were delaying in releasing payment to the petitioner-company. She submits that the GST amount to the tune of Rs. 5,60,52,391/- has been paid in three installments. She submits that the GST is a complete Code in itself and there are provisions of penalty and in view of that, Section 174 of the Indian Penal Code is not attracted. She draws attention of the Court to Section 70 of the CGST Act, 2017 and submits that power to summon persons to give evidence and produce documents is prescribed under Section 70 of the said Act. She further draws attention of the Court to Section 125 of the CGST Act, 2017 and submits that general penalty is prescribed therein to the tune of maximum Rs. 25,000/- only. She further submits that Section 132 of the CGST Act, 2017 is the provision meant for punishment for certain offences, which are prescribed in the said Section. She also draws attention of the Court to the summons, which are annexed in Cr. M.P. No. 2449 of 2019 particularly at Annexure-3, which is dated 29.12.2018 issued by the company through its Director and submits that a sum of Rs. 1,56,50,520/- was paid on 05.12.2018 and by the said letter, further 45 days’ time was requested for further depositing the GST