Advocates:
['M/S VIMAL B CRIMSON', '', 'IMMACULATE VIMAL', 'N P KUMAR SPECIAL PUBLIC PROSECUTOR']

IN THE HIGH COURT OF JUDICATURE AT MADRAS

( Criminal Jurisdiction )

Monday, the Twentieth day of June Two Thousand Twenty Two

PRESENT

The Hon`ble Mr Justice G.K. ILANTHIRAIYAN

CRIMINAL ORIGINAL PETITION No.12539 of 2022

1 MERCY MANUEL ANAND [ PETITIONERS / ACCUSED ]

2 J SAMUEL JESUDASAN

Vs

THE SENIOR INTELLIGENCE OFFICER, [ RESPONDENT ]

DGGI, CHENNAI ZONAL UNIT,

NO.16, BSNL BUILDINGS, TOWER-II,

5TH AND 6TH FLOOR, GREAMS ROAD,

CHENNAI - 34

For Petitioner : M/S. VIMAL B.CRIMSON Advocate

For Respondent : M/S N.P.KUMAR SPECIAL PUBLIC PROSECUTOR

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 for the offences punishable under Section 132 of the

Central General Services Tax Act, 2017, in R.R.No.11 of 2022 in

F.No.DGGI/INV/GST/2021/DD-IV, seek anticipatory bail.

2. The case of the prosecution is that the petitioners are in

the case of evasion of General Services Tax in the name and style of

M/s Servocraft HR Solutions Pvt Ltd. The petitioners are arrayed as

A2 and A3 and they are the Directors of M/s Servocraft HR Solutions

Pvt Ltd, which is engaged in the activity of providing Manpower

supply to various companies in Tamil Nadu. One David Manuel Anand is

a Managing Director. He was already arrested and remanded to judicial

custody. During the investigation found that the company has availed

and utilized excess ineligible Input Tax Credit (ITC) without any

documentation and without receipt of good/services by mentioning suo-

moto Input Tax Credit in their GSTR-3B returns in order to set off

GST liability, which was otherwise to be paid in cash. The Managing

Director also availed ineligible Input Tax Credit to the tune of

Rs.7.75 crores approximately in violation of the above said CGST Act,

2017. In fact, the Managing Director who was arrested made his

voluntary statement on 04.05.2022 as contemplated under Section 70 of

https://hcservices.ecourts.gov.in/hcservices/

the CGST Act, 2017 and admitted that their company did not have any

major input cost, that he knows that availing and utilizing excess

ineligible Input Tax Credit without any documentation is an offence

under GST Act. Thereby, he has committed an offence as he has availed

excess ineligible Input Tax Credit without any documents. The total

ineligible suo-moto Input Tax Credit availed without any receipt of

goods and utilized for payment of GST liability by the Company where

the petitioners are the Directors, to the tune of Rs.7,75,52,414/-.

As on date the GST liability is Rs.6,55,89,236/- in which they have

made payment of Rs.92,63,178/-. Thereafter, during the course of

investigation another payment of Rs.27 Lakhs were made that too after

arrest of the said D.Manuel Anand who is the Managing Director of the

company. Hence, the complaint.

3. The learned counsel for the petitioners would submit that the

petitioners are not actively participated in the day-to-day affairs

of the company and in fact as per the case of the prosecution, the

husband of the first petitioner is alone running the company and he

is actively involved in the business affairs with the M/s Servocraft

HR Solutions Pvt Ltd. Though, the petitioners are Directors of the

company, they are not liable to pay any tax as alleged by the

prosecution. However, he submitted that they are ready and willing to

deposit the original title deeds as security. Therefore, he prays to

grant anticipatory bail to the petitioners.

4. The learned Additional Public Prosecutor would submit that

the petitioners had committed offence of tax evasion. Hence, he

vehemently opposed to grant anticipatory bail to the petitioners.

5. Considering the above facts and circumstances and also

already the first petitioner's husband was arrested, this Court