Uttar Pradesh Goods and Services Tax Act, 2017 (U.P. Act No. 1 of 2017), Section 122, 130 – GST -- Excess Stock at business premises --  Proceedings u/s 130 of the GST Act cannot be put to service if excess stock is found at the time of survey.

(Para 5, 10)

Central Goods and Services Tax Act, 2017 (12 of 2017), Section 132 -- Integrated Goods and Services Tax Act, 2017 (13 of 2017), Section 20(XV) -- Code of Criminal Procedure, 1973 (2 of 1974), Section 439 – FIR under GST laws -- Regular bail -- Criminal liability of the petitioner is yet to be decided by the trial Court during the course of trial -- Petitioner was arrested on 19.04.2023 and the maximum sentence provided under the statute is five years -- Prosecution is based on the testimonies of official witnesses and the petitioner may not be in a position to influence the witnesses -- Even otherwise, the petitioner cannot be confined in jail as an under-trial for an indefinite period – Bail allowed.

(Para 6)

Indian Penal Code, 1860 (45 of 1860), Section 406, 420, 467, 468, 471  -- Haryana Goods and Services Tax Act, 2017 (19 of 2017), Section 132(1)(B)(C) -- Code of Criminal Procedure, 1973 (2 of 1974), Section 439 – Creating false and bogus companies for extracting GST amount -- Habitual offender – Regular bail -- Bail to a petitioner cannot be denied solely on the ground that several other cases are pending against him, even though, he has been able to make out a case for grant of bail in the facts of the present case -- Petitioner has already undergone more than 01 year and 11 months of the custody and the trial is at an initial stage – Bail allowed.

(Para 6-9)

Himachal Pradesh Value Added Tax Act, 2005 (12 of 2005), Schedule-B, Entry 16, 23, Section 46(1), 48(1) -- Milk – Milk cream – VAT on milk cream -- A scientific or technical meaning of the term ‘milk cream’ should not be adopted and the popular meaning of milk cream as is commonly understood, should be taken note of, i.e. that it is a product which is different from milk -- This is because a person who wishes to buy milk cream would not go to the market and ask for milk -- He would only ask for milk cream because it is a separate product though also a milk product.

(Para 37)

Central Goods and Services Tax Act, 2017 (12 of 2017), Section 74(1), 74(4), 74(5) – Central Goods and Services Tax (CGST) Rules, 2017, Rule 142(2) – Govt. instructions dated 25.05.2022 issued by the CBIC with respect to the GST investigation -- Input Tax Credit claim – Show cause notice -- Search and penalty – Search was conducted by Central GST Commissionerate -- Amount of tax, interest and penalty was deposited by the petitioner u/s 74 (5) of CGST Act, 2017 – As per Rule 142 (2) of the CGST Rules, when a payment is made in FORM GST DRC-03, the proper officer has to issue acknowledgment, accepting the payment made by the said person in FORM GST DRC-04 -- Till date, neither they have issued FORM GST DRC-04 nor issued any notice u/s 74 (1) of the CGST Act.

-- The respondents have not followed the Govt. instruction No.01/2022-23 dated 25.05.2022 issued by the CBIC.

-- In these instructions, it is clarified that there is no bar on the taxpayers for voluntarily making the payments on the basis of ascertainment of their liability on non-payment/short payment of taxes before or at any stage of such proceedings. It is the duty of the officer to inform the taxpayers regarding the provisions of voluntary tax payment through DRC-03.

Petitioner deposited Rs.35,73,147/-, but the officer has not issued DRC-03 till date -- Neither the department has followed the provisions of Rule 142 (2) of the CGST Rules nor has issued any notice u/s 74 (1) of the CGST Act -- Respondents directed to return the amount in question to the petitioner along with simple interest at the rate of 6% per annum from the date of deposit till the payment is made within a period of two weeks.

(Para 7, 8)

Central Goods and Services Tax Act, 2017 (12 of 2017), Sections 69, 132(1)(a) – Code of Criminal Procedure, 1973 (2 of 1974), Section 437 – Bail – Pre-condition to deposit Bank Guarantee of Rs.1.5 crores – Pre-condition of furnishing bank guarantee imposed by the High Court is not liable to be sustained, set aside.

(Para 5, 6, 11)

A. Central Goods and Services Tax Rules, 2017, Rule 138A – Physical form of invoice – Requirement of -- Documents and devices to be carried by a person-in-charge of the conveyance included the invoice – It is trite that the provision in a taxing statute has to be construed strictly and no benevolent interpretation is available while construing taxing statute – Held, Invoice has to be carried in physical form and if required shall be produced in its physical form.

(Para 9,10)

B. Central Goods and Services Tax Act, 2017 (12 of 2017), Section 107(2) -- Central Goods and Services Tax Rules, 2017, Rule 109, 138A – Physical form of Invoice – Appellate Authority’s Jurisdiction -- An opportunity may be given to the petitioner to produce the relevant invoice/ invoices -- Petitioner shall produce the relevant documents being the invoice/ invoices in the physical form within the scope of the existing appeal -- The entire exercise shall be carried out and completed by the relevant respondent, the statutory authority, positively within a period of four weeks -- Appellate authority to revisit the issue after giving an opportunity of hearing to the petitioner shall decide the same by passing its reasoned order.

 (Para 11-15)

Central Goods and Services Tax Act, 2017 (12 of 2017), 132(1)(a),(h),(k) (l), 132(5) – Code of Criminal Procedure, 1973 (2 of 1974), Section 439 -- Evasion of GST – Regular bail -- Transportation of unmanufactured tobacco weighing about 35,57,450 kgs. for clandestine manufacture and supply of zarda without payment of leviable duties and taxes -- Petitioner was arrested on 21.07.2022 and while in custody, the investigation completed and the charge sheet filed -- Punishment may extend to 5 years and fine – Petitioner has already undergone incarceration for more than four months and completion of trial would take some time -- Evidence to be tendered would essentially be documentary and electronic -- Ocular evidence will be through official witnesses, due to which there can be no apprehension of tampering, intimidating or influencing – Petitioner ordered to be released on bail.

(Para 6, 7)