Kishore Wadhwani v. State of Madhya Pradesh & Ors.

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The Tax Publishers 2025 TaxPub(GST) 737 (MP-HC) IN THE MADHYA PRADESH HIGH COURT VIVEK RUSIA & GAJENDRA SINGH JJ. Kishore Wadhwani v. State of Madhya Pradesh & Ors. Writ Petition No. 40019 of 2024 13 March, 2025 Petitioner by: Abhinav Malhotra, learned counsel Respondent No.1/State by: Amit Rawal, learned Government Advocate Respondents No. 2 to 4 by: Prasanna Prasad, learned counsel ORDER *Vivek Rusia J.* With the consent of the parties, finally heard. The petitioner has filed the present petition under article 226 of the Constitution of India seeking quashment of FIR No.88/2021 dated 10-2-2021 registered at Police Station Tukoganj, District Indore for the commission of offences punishable under sections 420, 467, 468, 471 & 120-B of the Indian Penal Code. The petitioner is also challenging the constitutional validity of section 132(6) of the Central Goods & Services Tax Act, 2017 (in short 'CGST Act'). Because of a challenge to the provision of the CGST Act, this writ petition is listed before the Division Bench. Facts of The Case 2. Respondents No.3, 4 & 5 are the officials of the GST Department working under the Ministry of Finance. 2.1. The petitioner is a proprietor of M/s Elora Tobacco Company Limited (in short 'ETCL'). ETCL is a company registered under the provisions of the Companies Act, of 1956 and engaged in the manufacturing of cigarettes pan masala etc. 2.2. The DGGI, Bhopal, Zonal Unit through Indore initiated an investigation against ETCL in June 2020. The initial investigation revealed that ETCL was involved in clandestine manufacturing and clearance/supply of cigarettes and evaded the duty/tax of rupees 2000 crores from the period July 2017 to June, 2020. Kishore Wadhwani Syndicate through Associates Managing Firm found involved in the evasion of 420 crores of GST. He was arrested on 15-6-2020 under section 69 of the CGST Act for committing the offence specified under section 132(1)(a). 2.3 The petitioner approached this Court by way of an application under section 439 of the Code of Criminal Procedure, 1973 (M.Cr.C. No.26653 of 2020). Vide order dated 13-8-2020, he was granted bail in Crime No.23/2020 registered under section 132(1)(a)(i) of the CGST Act & section 409, 467, 471, 120-B of the IPC at the instance of Department of Revenue Intelligence and Directorate General of Goods and Services Tax Intelligence Central Excise Office, District Indore. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers 2025 TaxPub(GST) 737 (MP-HC)

IN THE MADHYA PRADESH HIGH COURT

VIVEK RUSIA & GAJENDRA SINGH JJ.

Kishore Wadhwani v. State of Madhya Pradesh & Ors.

Writ Petition No. 40019 of 2024

13 March, 2025

Petitioner by: Abhinav Malhotra, learned counsel

Respondent No.1/State by: Amit Rawal, learned Government Advocate

Respondents No. 2 to 4 by: Prasanna Prasad, learned counsel

ORDER

Vivek Rusia J.

With the consent of the parties, finally heard.

The petitioner has filed the present petition under article 226 of the Constitution of India seeking quashment of FIR No.88/2021 dated 10-2-2021 registered at Police Station Tukoganj, District Indore for the commission of offences punishable under sections 420, 467, 468, 471 & 120-B of the Indian Penal Code. The petitioner is also challenging the constitutional validity of section 132(6) of the Central Goods & Services Tax Act, 2017 (in short 'CGST Act'). Because of a challenge to the provision of the CGST Act, this writ petition is listed before the Division Bench.

Facts of The Case

2. Respondents No.3, 4 & 5 are the officials of the GST Department working under the Ministry of Finance.

2.1. The petitioner is a proprietor of M/s Elora Tobacco Company Limited (in short 'ETCL'). ETCL is a company registered under the provisions of the Companies Act, of 1956 and engaged in the manufacturing of cigarettes pan masala etc.

2.2. The DGGI, Bhopal, Zonal Unit through Indore initiated an investigation against ETCL in June 2020. The initial investigation revealed that ETCL was involved in clandestine manufacturing and clearance/supply of cigarettes and evaded the duty/tax of rupees 2000 crores from the period July 2017 to June, 2020. Kishore Wadhwani Syndicate through Associates Managing Firm found involved in the evasion of 420 crores of GST. He was arrested on 15-6-2020 under section 69 of the CGST Act for committing the offence specified under section 132(1)(a).

2.3 The petitioner approached this Court by way of an application under section 439 of the Code of Criminal Procedure, 1973 (M.Cr.C. No.26653 of 2020). Vide order dated 13-8-2020, he was granted bail in Crime No.23/2020 registered under section 132(1)(a)(i) of the CGST Act & section 409, 467, 471, 120-B of the IPC at the instance of Department of Revenue Intelligence and Directorate General of Goods and Services Tax Intelligence Central Excise Office, District Indore.