No Benefit No Arrest: Punjab & Haryana HC

Punjab & Haryana High Court has passed the order of No Benefit No Arrest in case of Akhil Krishan Maggu & Anr. VS Deputy Director, Directorate General of GST Intelligence & Ors. on 15th November 2019. The HC has ordered if the Chartered Accountants, Lawyers or GST Practitioners are just filing the return and does not have any benefits for frauds and miscondusct then they should not be arrested.

Following is the sample text of order of Akhil Krishan Maggu & Anr. VS Deputy Director, Directorate General of GST Intelligence & Ors.:

1. Akhil Krishan Maggu (Petitioner No. 1) son of Sanjeev Maggu- Petitioner No. 2 is a practising lawyer in the field of taxation. The Petitioners through instant petition under article 226 of Constitution of India are seeking quashing of summons dated 28.8.2019 (Annexure P-11) issued by Senior Intelligence Officer (for short ‘SIO’), Directorate General of GST Intelligence (for short ‘DGGI’).

2. The pleaded case of the Petitioners is that Petitioner No. 1 as an Advocate, on behalf of four exporters who had retracted their statements made at the first instance filed Writ Petitions before Delhi High Court against DGGI. As per Respondent these four exporters had availed huge amount of refund of IGST and they are dummy owners. The DGGIRespondent on 15.8.2019 searched Gurugram residence of Ramesh Wadhera-alleged owner of dummy export firms who happens to be neighbour of Petitioners. On the request of Ramesh Wadhera, Petitioners came to his residence and some commotion took place between Petitioners and official of DGGI. At the behest of DGGI, Police registered FIR dated 15.8.2019 under Section 186, 353 IPC at DLF Police Station, Gurugram against both the Petitioners and arrested them on the same day. Both were released on bail on 22.8.2019 after a week incarceration. The DGGI on 27.8.2019 again recorded statements of said dummy exporters, who allegedly disclosed name of Petitioners apart from earlier names of Ramesh Wadhera and Mukesh Kumar as also being involved. The Respondent-DGGI on 28.8.2019 searched Gurugram residence of Petitioners who at that point of time were not at home. The Respondents after completing search took away younger brother of Petitioner No. 1 to their office and arrested him on 29.8.2019. The DGGI on 2.9.2019 lodged another FIR against Petitioner No. 2 under Section 186, 34 & 353 IPC at DLF Police Station, Gurugram alleging that he called police at the time of search of his residence on 28.8.2019 which amounts to obstruction in performance of official duty. The DGGI-Respondent vide summons dated 28.8.2019 (Annexure P-11) directed Petitioners to appear before SIO to tender their statement in connection with export made by dummy export firms. Apprehending coercive action, the Petitioners approached this Court by way of present writ petition.

3. This court while issuing notice of motion vide order 10.9.2019 directed Petitioners to appear before Senior Intelligence Officer, DGGI.Both the Petitioners appeared before Respondent on 11 & 12th September’ 2019. The DGGI-Respondent on 12.9.2019 handed over Petitioner No. 2 to Directorate of Revenue Intelligence, New Delhi who arrested him on 12.9.2019. On 13.9.2019, the Petitioner No. 2 was sent to judicial custody and till date he is stated to be in judicial custody. The Petitioner No. 1 again appeared before DGGI-Respondent on 28.9.2019 & 1.10.2019 but statement could not be recorded. The Petitioner again appeared before Respondent on 7.10.2019 and tendered his statement. The Petitioner appeared before
Respondent on 11.10.2019 & 16.10.2019 but his further statement was not recorded.

Download the full order of Akhil Krishan Maggu & Anr. VS Deputy Director, Directorate General of GST Intelligence & Ors., below:

Source: Punjab & Haryana High Court