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Bengaluru, Jun 26: Karnataka's Commercial Taxes Department has sealed off an undeclared warehouse with imported goods worth Rs 4 crore in Bengaluru and found 60 GST registrations linked to a Chinese national from Wuhan.

The tax department officials found 25,446 China-made electronic and fast-moving consumer goods worth Rs 4 crore stored in the warehouse which was not declared to the tax authorities.

Commissioner of Commercial Taxes MS Srikar said in a statement that the officers noticed that one person from Wuhan City, China, got the premises in Bengaluru on lease.

They also found that about 60 registrations (both central and state jurisdictions) under the GST Act, in the name of a number of persons for online trading of imported China-made goods, had a single address which was vacant.

Most of the registrations were found irregular in the filing of returns and payment of tax. Majority of the firms either filed nil returns or were non-filers. The registration data showed that one business was registered in 2017-18, 43 in 2018-19, 14 in 2019-20 and two in 2020-21. Most of the 60 firms were private limited companies and 24 persons were interchangeably directors in 58 firms.

At the time of raid, neither the lessee, the Chinese national, nor any of the other 59 registered taxable persons were available at the business premises and no one came forward to participate in the proceedings in spite of providing sufficient time.

It is learnt that the Chinese national is operating the business from Wuhan City since January 2020 with the assistance of some of his agents/employees in Bengaluru.

It has also been learnt that multiple registrations are being taken for a better rating on e-commerce platforms, Srikar said.

The raids were led by Nitesh K Patil, Additional Commissioner, Enforcement, South Zone.
The Commercial Taxes Department is closely watching the genuineness of newly registered persons and conducting post-registration verification visits.

Any registration taken with mala fide intention of evading taxes will be dealt with seriously, the Commissioner said. 

Bengaluru, Mar 6: All the arrested in a case of sedition filed over a school play in Karnataka's Bidar have been granted anticipatory bail by a court that said the case lacked enough basis.

The play, themed on protests against the Citizenship (Amendment) Act (CAA), "has not caused any disharmony in the society", said the district and sessions court in Bidar.

The play, performed in January by the children of prestigious Shaheen School, landed in trouble when a sedition complaint was filed over an 11-year-old girl's lines - enacting an elderly woman, she said if anyone asked for documents she would hit them with slippers.

That led to a sedition case and the police questioning children, teachers and the school management over many rounds.

"The drama has not caused any disharmony in the society. Considering all the circumstances, I am of the opinion that the ingredients of Section 124A of IPC (Sedition) are prima facie lacking," said the court.

Five members of the school management team have been granted protection from arrest. Earlier, the head teacher and the mother of the student who spoke the dialogue were sent to custody, but on other charges including the abetment of an offence. They were not accused of sedition. They were later granted bail.

The repeated questioning of young students and the arrest of the widowed mother of a student caused a huge uproar in the town.

An order is expected soon on the bail application in another sedition case in Karnataka, against three Kashmiri students. The students, who were studying in Hubbali in north Karnataka, are facing charges for reportedly using pro-Pakistani slogans in an online post. The Hubbali Bar Association had asked its members not to represent the students. Lawyers from Bengaluru who went to Hubbali represent the students were heckled.

On Thursday, a team of lawyers from different districts again went to Hubballi and were provided police protection. BT Venkatesh, one of the lawyers, said he had a meeting with bar association members and that the matter was sorted out. The students have applied for bail and an order is expected next week.