SMT. JECINTHA PILLAI Vs. STATE OF TELANGANA

JUDGEMENT

(1.) The present Criminal Petition is filed under Section 438 Cr.P.C. seeking to enlarge the petitioners on bail, in the event of their arrest, in connection with the proceedings in F.No.INV/DGGI/ WRU/GST/04/2019-20/PF (Legal) on the file of the Special Judge for Economic Offences, Nampally, Hyderabad.

(2.) Heard Sri P.Vamseedhar Reddy, learned Counsel appearing for the petitioners and Sri B.Narasimha Sharma, learned Special Public Prosecutor, appearing for the respondent.

(3.) The case of the prosecution is that the petitioners are the Directors of M/s. Transworld Educare Private Limited (hereinafter referred to as "TEPL"). The Intelligence developed by the officers of the Warangal Regional Unit revealed that TEPL is providing taxable services i.e., consultation services without raising invoices for the services rendered by them and also not paying appropriate GST on the consideration received towards provision of taxable services, resulting in loss of revenue to the government exchequer. Accordingly, investigation was initiated against TEPL and some incriminating documents were recovered under panchanama dated 06.01.2020 and the statement of David Koil Pillai (A-1) Chairman and CEO of TEPL. On scrutiny of the documents resumed and voluntary statement given by A-1 reveals that the TEPL is indulging in evasion of GST on the taxable services provided by them during the period from 7/2007 to 12/2019 without raising any invoices for the taxable services rendered. During the said period, TEPL evaded an amount of Rs.11,80,95,716/- towards GST by not raising any invoice/bill and by suppressing the details in the returns filed for the taxable services rendered by them to various service recipients and caused loss to the Government exchequer. During the course of investigation and as per the statement of A-1, it is revealed that A-1 is managing entire affairs of the organization and he is responsible for evasion of GST on the taxable services provided by them without issuing any invoices. Further, he had deliberately evaded GST without raising invoices/bills resulting in huge loss to the Government.