Recently the Telangana High Court didn’t consider the writ petitions of the companies which were facing arrest charges from the GST Commissionerate officials for unethical activities in their return filing.
However, the court has stayed on their immediate arrest and asked the GST officials to take actions as per the law. The companies are Infinity Metals Products India Limited, Sujana Universal Industries Limited, Hindustan Ispat Private Limited, EBC Bearings India Limited, V.S. Ferros Enterprises Private Limited, Hyderabad Steels, MSR India Limited, Suyati Impex Private Limited.
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The companies head stated that they cannot be arrested as per the sections 41 and 41A of the Criminal Procedure Code & contended the notice by saying that they have been appearing for the summon regularly which makes ineligible for any arrest charge. The Justice V. Ramasubramanian and Justice P. Keshava Rao on the Division Bench said that there is no reason to accept the technical fault of the GST portal.
The charges on the companies are that they have used the fake or bogus invoice to claim the input tax credit as told in the counter affidavit by the GST officials. The companies are charged with 224.05 crores of an unauthorized input tax credit.
As per the judgement, it said, “The complaints against the petitioners constitute a threat to the very implementation of law within a short duration of its inception.”