Page 15 - Chap21 Offences & Penalties

d) Collects any amount as tax but fails to pay the same to the Government within 3 months from the
date on which such payment becomes due.

Ü In case of a cognizable offence, the officer authorised to arrest the person shall inform such person of
the grounds of arrest and produce him before a Magistrate within 24 hours.

CCP 21.06.17.00
State the prosecution, arrest and bail implications, if any, in respect of the following independent
cases pertaining to June:
(i) ‘Ashuram’ fraudulently avails input tax credit of ` 200 lakh without any invoice or bill.

However, he is yet to utilize the same.
(ii) ‘Bahubali’ fraudulently avails the refund of tax of ` 550 lakh. The said tax has been recovered
from the buyer also.
(iii) ‘Chintamani’ knowingly supplies false information sought by the CGST Officer. The amount
of tax involved is ` 250 lakh.

(iv) ‘Deendayal’ collects `` 650 lakh as tax in January from its clients but has deposited only ` 50
lakh with the Central Government till date.
Note: Assume that in all above cases, offence, if any, has been committed for the first time.[CA
Final RTP May 22]

Answer:-
Person Offence Prosecution Arrest Bail
‘Ashuram’ Non-cognizable No prosecution No arrest Bailable Offence
offence [Section (prosecution is [Sec 69(1)] [Section 132(4)]

132(1)(c) read with g i v e n o n l y i f
sec 132(4)] wrongly availed
ITC is more than `
200 lakhs)

‘Bahubali’ Non-cognizable Upto 5 years[Section No arrest Bailable Offence
offence [Section 132(1)(e)(i)] but, [Sec 69(1)] [Section 132(4)]
132(1)(e) read minimum 6 months
with sec 132(4)]

‘Chintamani’ Non-cognizable Upto 6 months No arrest Bailable Offence
offence [Section [section 132(1)(f)(iv)] [Sec 69(1)] [Section132(4)]
132(1)(f) read
with sec 132(4)]

‘Deendayal’ Cognizable offence Upto 5 year [Section Arrest can be ordered Non-Bailable
[Section 132(1)(d) 132(1)(d)(i)] but, by Commissioner [Section 132(5)]
read with section minimum 6 months without arrest warrant
132(5)] [Sec 69(1)]

Author's note:- In case of Chintamani, ICAI RTP has given prosecution "Upto 3 years [Section 132(1)(f)(ii)]" but as per
the author, the correct prosecution is "Upto 6 months [section 132(1)(f)(iv)]". Thus, the ans given by ICAI may be wrong.

CA VISHAL BHATTAD 09850850800 www.vsmartacademy.com V’Smart Academy 451