Tamil Nadu

Director of stevedore companies gets bail

The Madurai Bench of the Madras High Court on Tuesday granted bail to the director of two Thoothukudi-based stevedore companies. He was arrested and remanded in judicial custody in connection with alleged Goods and Services Tax evasion to the tune of ₹13.88 crore.

The case of the prosecution was that the petitioner, J. Giri Ram, was the director and person in-charge of the two companies. The first company collected GST from its customers to the tune of ₹4.61 crore but did not pay the amount to the government.

Similarly, it availed itself of ineligible excess Input Tax Credit worth ₹2.54 crore. The second company also failed to pay ₹4.95 crore to the government and fraudulently availed itself of Input Tax Credit worth ₹1.78 crore without proper documents.

The offences were punishable under the Central Goods and Services Tax Act, 2017. The petitioner was arrested and remanded in judicial custody.

In his bail petition, Giri Ram said combining the cases was not proper since the transactions and the legal entities were entirely different. Only for the purpose of making the offence nonbailable, the liabilities of the two companies were combined, he said.

Justice G. Ilangovan granted bail to the petitioner with conditions. The court said whether any mistake was committed by clubbing the two transactions could be decided only during the trial.

The court took note of the fact that the petitioner had paid ₹30 lakh as tax and was ready to pay ₹1.5 crore towards the disputed tax liability. The court directed him to pay the sum within a month. He was also directed to surrender his passport.

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Printable version | Jun 22, 2021 10:43:40 PM | https://www.thehindu.com/news/national/tamil-nadu/director-of-stevedore-companies-gets-bail-madurai-thoothukudi/article34701959.ece

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