There is no difficulty in recognizing the principle that the single transaction may give rise to both criminal and civil consequences. In the instant case, the same appears to have been caused. There is no principle in law as may warrant any interference in the present petition to either grant injunction against the pending proceedings under Section 74 of the Central Act or to quash the same, merely because the criminal proceedings is pending against the petitioner arising from the same transaction under section 132(1)(c) of CGST Act.
Parallel proceedings under Section 74 and 132 of the CGST Act, 2017 ---The petitioner sought directions for quashing the impugned SCN dated 03.06.2021 passed under Section 74 of the Act, 2017. The court observed that two proceedings have arisen - one under Section 74 and another seeking prosecution, under Section 132(1)(c) of the Act. There is no difficulty in recognizing the principle that the single transaction may give rise to both criminal and civil consequences. Both proceedings may continue simultaneously such that the rule of evidence applicable to each may be applied independently. While criminal prosecution may conclude applying the rule of strict proof, the civil proceedings may conclude on the rule of balance of probabilities.
Held that:- The Hon’ble High Court dismissed the petition, leaving it open to the petitioner to raise such objections and defence, in both criminal and civil proceedings, as it may be advised.
There is no difficulty in recognizing the principle that the single transaction may give rise to both criminal and civil consequences. In the instant case, the same appears to have been caused. There is no principle in law as may warrant any interference in the present petition to either grant injunction against the pending proceedings under Section 74 of the Central Act or to quash the same, merely because the criminal proceedings is pending against the petitioner arising from the same transaction under section 132(1)(c) of CGST Act.
Parallel proceedings under Section 74 and 132 of the CGST Act, 2017 ---The petitioner sought directions for quashing the impugned SCN dated 03.06.2021 passed under Section 74 of the Act, 2017. The court observed that two proceedings have arisen - one under Section 74 and another seeking prosecution, under Section 132(1)(c) of the Act. There is no difficulty in recognizing the principle that the single transaction may give rise to both criminal and civil consequences. Both proceedings may continue simultaneously such that the rule of evidence applicable to each may be applied independently. While criminal prosecution may conclude applying the rule of strict proof, the civil proceedings may conclude on the rule of balance of probabilities.
Held that:- The Hon’ble High Court dismissed the petition, leaving it open to the petitioner to raise such objections and defence, in both criminal and civil proceedings, as it may be advised.