The Deputy Director vs. M/S.Shri.Keshav Cement And Infra Limited
Held
The High Court held that the challenge to the validity of the impugned order dated 02.03.2020, which rejected the application for remanding the accused to judicial custody, no longer survived for consideration. This was because the respondents subsequently paid the duty payable under the Goods and Service Tax Act, 2017. Consequently, the question of whether the impugned order was sustainable or not became purely academic. The Court disposed of the petition on this basis. The Court also explicitly stated that this order should not be treated as a precedent for subsequent applications for remanding accused to judicial custody for offences under the GST Act.
Facts
The petitioner, the Deputy Director of the Directorate General of GST Intelligence, filed a writ petition challenging an order dated 02.03.2020 passed by the JMFC-III, Belagavi. This order had rejected the petitioner's application for remanding the respondents (M/s. Shri. Keshav Cement and Infra Limited and its directors/chairmen) to judicial custody for alleged offences under the Goods and Service Tax Act, 2017. The petitioner contended that while the arrest guidelines from the Supreme Court case of Arnesh Kumar v. State of Bihar were followed, the Magistrate incorrectly rejected the remand application. However, during the pendency of the writ petition, the respondents paid the duty payable under the GST Act, rendering the challenge to the Magistrate's order academic.
Key Issues
1. Whether the order dated 02.03.2020 passed by the JMFC-III, Belagavi, rejecting the application for remanding the accused to judicial custody for offences under the Goods and Service Tax Act, 2017, is sustainable in law, considering the alleged non-compliance with the guidelines laid down in Arnesh Kumar v. State of Bihar. Petitioner's contention: The petitioner argued that the guidelines issued by the Supreme Court in Arnesh Kumar v. State of Bihar were followed before arresting the respondents. They contended that the Magistrate's rejection of the remand application on the grounds of non-compliance was not sustainable in law. Respondents' contention: The judgment does not record any specific arguments made by the respondents. However, the subsequent payment of duty by the respondents appears to have rendered the dispute moot.
Sections Cited
Goods and Service Tax Act, 2017
AI-generated summary — verify with the full judgment below
- 1 - IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 23RD DAY OF NOVEMBER, 2022 BEFORE THE HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR WRIT PETITION NO. 147444 OF 2020 (GM-RES) BETWEEN: THE DEPUTY DIRECTOR, OFFICE OF THE DIRECTORATE GENERAL OF GST INTELLIGENCE, BELAGAVI ZONAL UNIT, SHRI. LAXMI COMPLEX, 2ND, 3RD, 5TH FLOOR, NO.4855/836, APMC ROAD, 1ST CROSS, SADASHIVANAGAR, BELAGAVI-590 019 …PETITIONER (BY SRI. S N RAJENDRA AND SRI. GIRISH S HULMANI, ADVOCATES) AND:
M/S.SHRI.KESHAV CEMENT AND INFRA LIMITED JYOTI TOWERS, 251/2, KARBHAR GALLI, 6TH CROSS, NAZAR CAMP, M. VADAGAON, BELAGAVI-590 005 REPRESENTED BY ITS MANAGING DIRECTOR
SHRI. HANAMANTSA S/O DONGARASA KOTWA, AGE:72 YEARS, CHAIRMAN EMERITUS OF M/S SHRI. KESHAV CEMENTS AND INFRA LIMITED, JYOTI TOWERS, 251/2, KARBHAR GALLI, 6TH CROSS , NAZAR CAMP, M. VADAGAON, BELGAVI-590 005
SHRI. VENKATESH S/O HANAMANTSA KATWA AGE:46 YEARS, CHAIRMAN EMERITUS OF M/S SHRI. KESHAV CEMENTS AND INFRA LIMITED, JYOTI TOWERS, 251/2, KARBHAR GALLI, 6TH CROSS, NAZAR CAMP, M. VADAGAON, BE
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