2021(02)LCX0186
Bombay High Court
One Point One Solution Limited & Ors.
Versus
Union of India & Ors.
WRIT PETITION (ST) NO. 4557 OF 2021 decided on 25/02/2021
IN THE HIGH COURT OF JUDICATURE
AT BOMBAY
CIVIL APPELLATE JURISDICTION
WRIT PETITION (ST) NO. 4557 OF 2021
One Point One Solution Limited &
Ors. .. Petitioners
Versus
Union of India & Ors. .. Respondents
Mr. Abad Ponda, Senior Advocate a/w. Ms. Madhu Gododia, Ms. Jyoti A. Singh i/by Naik Naik & Co. for the Petitioners.
Mr. Pradeep S. Jetly, Senior Advocate a/w. Mr. J.B. Mishra for Respondent Nos.1, 2 and 3.
Ms. Shruti Vyas - B panel counsel for Respondent No.4 - State.
CORAM : UJJAL BHUYAN & MILIND N. JADHAV, JJ.
DATE : FEBRUARY 25, 2021.
P.C.:
Heard Mr. Ponda, learned senior counsel for the petitioners.
2. Issue notice.
3. Mr. Mishra, learned counsel assisting Mr. Jetly, learned senior counsel waives notice on behalf of respondent Nos.1, 2 and 3 and Ms. Vyas, learned AGP waives notice for respondent No.4 - State.
4. Respondents to file reply affidavit within two weeks.
5. Though a number of prayers have been made in the writ petition, primary grievance and apprehension of petitioner Nos. 2 to 8 is arrest at the hands of respondent Nos. 2 and 3 under section 69 of the Central Goods and Services Tax Act, 2017.
6. Mr. Ponda, learned senior counsel has pointed out that Mr. Akshay Chhabra, Chairman Cum Managing Director of petitioner No.1 company and Mr. Sunil Jha, Chief Financial Officer of petitioner No.1 company have been arrested and are in judicial custody on the allegation that petitioner No.1 had committed the offence of availing ineligible Input Tax Credit to the extent of Rs. 9,04,89,054.00 by using fake invoices i.e. without actual supply of goods or services. He submits that out of the alleged availing of ineligible Input Tax Credit of slightly more than Rs.9 crores, petitioner No.1 has deposited Rs.4.80 crores which is more than 50% of the alleged dues. He further submits that petitioner Nos. 2 to 8 have co-operated with the investigation and will continue to do so. No useful purpose would be served by arresting petitioner Nos. 2 to 8 except causing humiliation to them.
7. Having heard learned counsel for the parties and on due consideration, we direct that no coercive action shall be taken against petitioner Nos. 2 to 8 till the next date. However, petitioner Nos.2, 7 and 8 shall appear before the investigating authority as summoned on 26.02.2021 at 11:00 a.m. and thereafter as and when summoned. Rest of the petitioners shall appear before the investigating authority as and when summoned and co-operate with the investigation.
8. Stand over to 16.03.2021 for filing of reply and rejoinder.
[ MILIND N. JADHAV, J. ]
[ UJJAL BHUYAN, J. ]
Equivalent .