It has been observed that in many cases of issuance of fake invoices and availment of ITC on the basis of fake invoices, the persons who have orchestrated/perpetuated these fraudulent acts are seeking judicial intervention through Hon’ble High Courts especially by challenging the power of arrest in terms of Section 69 of the CGST Act, 2017.

The Hon’ble Supreme Court vide its Order dated 29.05.2019 in regard to SLPs No. 4322-4324/2019 filed against the final judgment and order dated 11-04-2019 in CRLWP Nos. 1996/2019, 1997/2019 and 1998/2019, passed by the High Court of Judicature at Bombay, essentially challenging the Power to Arrest under Section 69 of the CGST Act, 2017 has, inter alia directed as under:

This office has received a series of communications from Registrar of Companies of various States of India along with a list of Companies which have been identified by the said ROC(s) as entities to be struck off from the Register of the Registrar of Companies.

Please refer to the Judgment of Hon’ble Supreme Court in the case of State of Uttar Pradesh & ors vs. M/S Kay Pan Fragrance Pvt. Ltd. in Civil Appeal No. 8942/2019 & 8944/2019.