A Surat-based businessman accused of fraudulently claiming input tax credit under the Goods and Services Tax (GST) was granted temporary relief by the Gujarat High Court on December 2 after it emerged that the state and Centre were conducting parallel investigation under their respective Acts for the same offence.
The court directed that there shall be no further proceedings with regard to the complaint filed by the central authority.
The accused, Rajesh Mundra, was arrested by the state tax unit of state GST (SGST) in February this year under appropriate provisions of the SGST Act for allegedly operating as many as 14 fake firms to claim input tax credit (ITC) and was released on bail later.
In June, the Central GST unit (CGST) filed a complaint for the same offence, accusing Mundra of setting up as many as 33 fake firms. Mundra was arrested a second time, this time based on the CGST unit’s complaint, although he was released days later.
Source from: https://indianexpress.com/article/india/businessman-accused-of-gst-fraud-gets-gujarat-hc-relief-7095912/