While granting bail to a Chinese national lodged in jail in a CGST tax evasion case since August last year, the Allahabad High Court issued a rider that she would keep the trial court informed, through the Chinese Embassy, about her place of stay and movement once every two months.
The Central Goods and Services Tax (CGST) Department, in its affidavit filed before the court, had referred to the woman, Alice Lee alias Li Tengli, as a habitual offender, stating she had earlier been arrested by Uttar Pradesh Anti-Terrorist Squad (UP ATS) in a hawala case lodged in 2021 and was released on bail in 2023
While passing the bail order, the judge took serious note of officials mentioning names of Supreme Court judges while citing their judgments.
The bench of Justice Samit Gopal observed that the CGST Department officer mentioned names of judges of the apex court in his counter affidavit while citing a judgment.
Identically, the court observed further, “… the court of the Additional Sessions Judge, Meerut, while deciding the bail application of the applicant in the first bail application, has… referred to judgments relied upon by learned counsel for the CGST Department but has therein mentioned names of the Hon’ble Judges of the Apex Court Presiding over the Bench in the said matter.”
“This system of mentioning names of Hon’ble judges while giving reference to the judgments is totally uncalled for,” the bench of Justice Gopal stated in its February 9 order.
The bench further directed the Registrar (Compliance) to “… communicate this order to the District and Sessions Judge, Gautam Buddha Nagar, and the court concerned for information, compliance and necessary action and also to the Director General, Central Goods and Service Tax, Commissionerate, Gurugram, for further transmission to the said officer for being cautious in future.”
The tax evasion case
Filing an application before the HC, Alice sought bail during the trial in a case filed against her under various sections of the CGST, Act, 2017, at Police Station, CGST Commissionerate, District Gautam Buddha Nagar. Alice has been in jail since August 26 last year in this case.
The case is based on a complaint filed by the Superintendent (Anti-Evasion), CGST, Gautam Buddha Nagar on October 17 last year against four people — Vinay Kumar, Alice Lee, Hu Lei, Tang Kai — and Tentech LED Display Private Ltd. alleging that the named persons, and the firm in Greater Noida, are engaged in manufacturing of goods.
The complaint stated that the firm imported several goods including cabinets with accessories, module power supply, cables, connectors and power adapters. From the bill of entry available on record, these goods were declared as parts for a Visual Display Unit/LED display unit.
As per the complaint, the four accused allegedly shifted their manufacturing activities from the ‘principal place of business’ to another site in Greater Noida where the unit was found running secretly.
It was also found that the accused were allegedly evading GST by mislabeling finished goods as “cabinets,” even though the cabinet was only a component of a Visual Display Unit.
Once all components, including the cabinet, are assembled, the VDU becomes a finished product classified under Chapter Sub Heading 85287219, which attracts GST at 28%. However, the taxpayer was reportedly dispatching VDUs while paying only 18% GST, resulting in a shortfall of 10%, according to the CGST case presented in court.
The court was informed that the tax evasion was calculated at Rs 88,80,751 for the financial years 2019-20 to 2024-25. The enquiry was completed, and the applicant was arrested, after which the complaint was filed.
What the HC said
In its order, the HC bench of Justice Gopal said the applicant is a Chinese national living temporarily in Greater Noida.
Her counsel submitted that she was appointed on February 21, 2024, to do security work in the Indian branch of the company on a fixed salary of Rs 15,000 and claimed she had been falsely implicated.
It was also submitted that she lives with her husband and a minor daughter aged three years
The maximum punishment for the offence is five years. The counsel also submitted that a co-accused in the case had been granted bail by a co-ordinate bench of the court last month.
In its counter affidavit, the CGST submitted that the applicant is a habitual offender and was previously arrested by the ATS, Lucknow, in a hawala case. It said she was granted bail on February 3, 2023, but misused this liberty granted to her by indulging in the present incident.
After submissions from both sides, Justice Gopal stated in the order, “Looking into the facts and circumstances of this case, the nature of evidence, and the absence of any convincing material to indicate the possibility of tampering with evidence, this court is of the view that the applicant may be enlarged on bail. Let the applicant… be released on bail in the aforesaid case.”
Among the key conditions for bail, the court said the applicant is required to submit a certificate from the Chinese Embassy before the trial court, and to ensure her presence at all trial proceedings.
Additionally, the applicant shall not leave the country without the trial court’s permission and must inform the court, via her embassy, of her place of stay and movements every two months.
According to details submitted in court, Alice’s visa expired and she applied for a fresh one on February 3 under the Entry Visa (X-Misc) category, which is under process.
This visa is granted to a foreign national facing criminal charge/trial proceedings, in order to facilitate the foreign national to face criminal charge/trial proceedings before the trial court or to appear before the investigating agency.
Source from: https://indianexpress.com/article/legal-news/chinese-woman-bail-88-lakh-tax-evasion-case-cgst-10535171/
