Gurugram Court grants transit remand of accused to the Court of learned Chief Judicial Magistrate, Yamuna Nagar at Jagadhri In GST case

DGGI, GURUGRAM V. MANOJ KUMAR  2022 (Gurugram Court)

"Mere fact that the office
of the complainant department lies within the jurisdiction of this
Court does not confer any jurisdiction upon this Court to try the present
matter"

FULL TEXT OF THE ORDER OF GURUGRAM COURT

DGGI, Gurugram. Vs. Manoj Kumar (Gurugram Court)

Present :- Sh. Harpeet Singh, Sr. Standing Counsel for complainant department.

Sh. A.K. Sachdeva. Counsel for applicant/accused Manoj Kumar.

1. This order of mine shall dispose of an application under Sub-Section (2) of Section 167 read with Section 179 of Code of Criminal Procedure, 1973 to transit the remand of the applicant/accused to the Court of learned Chief Judicial Magistrate, Yamuna Nagar at Jagadhari moved on behalf of applicant/accused Manoj Kumar.

2. As per the contention of the application it is stated that the applicant/accused Manoj Kumar is languishing in custody for the offence allegedly committed under Sections 132(a)&(I) of CGST Act, 2017. It is further averred that the accused has his place of business at village and Post Karera Khurd in the District of Yamuna Nagar and that he is registered under the Central Goods and Services Tax Act, 2017 and the State Goods and Services Tax Act, 2017 on the file of jurisdictional Officer at Yamuna Nagar.

3. It is further submitted that the offence alleged is committed within the local jurisdiction of District Yamuna Nagar and therefore, Chief Judicial Magistrate, Yamuna Nagar alone has the jurisdiction to try this case and with these submissions it is prayed that the applicant/accused be forwarded to the Court of learned Chief Judicial Magistrate, Yamuna Nagar at Jagadhari.

4. Upon notice, reply to the application was filed by the complainant department by submitting that the information was developed by the officers of Directorate General of GST Intelligence, Gurugram Zonal Unit indicating that one Sh. Manoj Kumar, Proprietor of M/s Harshit Traders & M/s M.S. Khad Store was engaged in clandestine procurement and supply of Agricultural Grade Urea to various manufactures of ply wood & Resin and one M/s Saba Chemicals Wood Products was found to be the major receipt manufacturer unit which was procuring agricultural grade Urea from accused Manoj Kumar in cash and further using the same to manufacture & clear taxable goods without payment of GST and relying upon the aforesaid information, searches were carried out at the premises of M/s Harshit Traders, M/s M.S. Khad Store and M/s Saba Chemicals Wood Products on 25.04.2022 to 26.04.2022 respectively and during the search proceedings various incriminating records/documents related to cash sale and procurement of agriculture grade were found & resumed.

5. It is further submitted that the date related to clandestine procurement of Agriculture Grade Urea by M/s Saba Chemicals Wood Products from M/s Harshit Traders and M/s M.S. Khad pertains to the period from 01.01.2020 to 22.04.2022 and it appears that M/s Harshit Traders and M/s M.S. Khad was involved in cash sale of 11,73,645 Kg of agriculture grade urea M/s Saba Chemicals Wood Products which was used for manufacture of Resin and which has been further sold in cash without issuance of any tax invoices there evading GST of Rs.22,30,51,232/-.

6. It is further submitted that the applicant/accused has made cash sale of Agriculture Grade Urea to more than 40 parties including M/s Saba Chemicals Wood Products, which has resulted in evasion of GST amounting to Rs.22,30,51,232/- on account of clandestine manufacture and sale of Resin. It is further submitted that the investigation is still going on and the office of the complainant department lies within the jurisdiction of this Court and therefore this Court has the jurisdiction to try the present case. With these submissions, it is prayed that present application be rejected with costs.

7. I have heard the learned Senior Standing Counsel for the complainant department and learned defence counsel at length and have perused the case file carefully and thoroughly.

8. After hearing the rival submissions raised and after ruminating over the record this Court is of the considered view that in the present case admittedly, M/s Harshit Traders and M/s  M.S. Khad has sold total 11,73,645 KGs of Agriculture Grade Urea in cash to M/s Saba which had issued the fake invoices which are located within the territorial jurisdiction of Yamuna Nagar. Further, it is alleged that said invoices were used for manufacture of Resin and which has been further sold in cash without issuance of any tax invoices thereby evading GST of Rs.22,30,51,232/-.

9. Therefore, as per the record available M/s Saba Chemicals Wood products firm which played an important role in issuance of fake invoices which were used for evading GST of Rs.22,30,51,232/- is registered at Yamuna Nagar and further the firms i.e. M/s Harshit Traders & M/s M.S. Khad Store of the accused are also registered at Yamuna Nagar respectively. It is further the case of the complainant department that accused's firm made several cash transactions with more than 40 parties including M/s Saba Chemicals Wood Products, which has resulted in evasion of GST amounting to Rs.22,30,51,232/- on account of clandestine manufacture & sale of Resin.

10. Hence, the complainant department has failed to satisfy this Court that any offence or the part of the said transaction took place within the jurisdiction of this Court. In this regard this Court expresses its inability to agree with the contentions of the learned Senior Standing Counsel appearing for the complainant department that the mere fact that the office of the complainant department lies within the jurisdiction of this Court confers any jurisdiction upon this Court to try the present matter.

11. In the light of aforesaid reason this Court is of the considered view that the cause of action to prosecute the applicant/accused Manoj Kumar does not arise at District Gurugram. Since, the accused firm is registered at District Yamuna Nagar and in these circumstances, no cause of action arose at District Gurugram.

12. Hence, this Court is of the view that Court at Gurugram lacks jurisdiction to try the present case and accordingly the application moved on behalf of applicant/accused Manoj Kumar under Sub-Section (2) of Section 167 read with Section 179 of Code of Criminal Procedure, 1973 to transit his remand to the Court of learned Chief Judicial Magistrate, Yamuna Nagar at Jagadhari is hereby allowed and the GST Officer concerned/prosecuting department is hereby directed to produce the applicant/accused Manoj Kumar before the Court of learned Chief Judicial Magistrate, Yamuna Nagar at Jagadhari on 02.06.2022, i.e. the date already fixed. The IO/prosecuting department shall also be entitled to obtain the custody of the applicant/accused Manoj Kumar from District Jail, Bhondsi, Gurugram for the purpose of production before the concerned Court. File, complete in all respects, be sent to the Court of learned Chief Judicial Magistrate, Yamuna Nagar at Jagadhari through proper channel. Copy of this order be provided to the IO concerned and be also sent to Superintendent, District Jail Bhondsi, Gurugram for compliance.