Socialite called for quizzing in ‘GST evasion case’

NEW DELHI: Socialite Shalini Passi, wife of businessman Sanjay Passi, has been summoned by the Meerut unit of Directorate General of GST Intelligence (DGGI) for questioning on Thursday in a case of alleged Goods and Services Tax evasion.

According to sources, the matter pertains to alleged short payment of GST by Pasco Motors LLP of which she was a partner. Shalini Passi shot to fame after starring in the ‘Fablous Lives of Bollywood Housewives’ on Netflix.

Pasco Motors LLP is an authorised dealer of Tata Motors and is in the business of sale of heavy motor vehicles, both chassis and fully built buses and trucks. The tax intelligence department had earlier served summons to Sanjay Passi and other executives of Pasco Motors but they are yet to join the investigation.

J K Mittal, lawyer of Sanjay Passi, has denied any tax evasion and told TOI that the allegations are false. “GST summons issued by the DGGI is malafide and the information of tax evasion is not mentioned in the said summon at all,” he said, adding that the matter has already been challenged in the Punjab and Haryana HC and is presently sub judice. Mittal also confirmed that Shalini Passi was a partner in Pasco Motors LLP and DGGI was making an inquiry into alleged “short payment of GST” as mentioned in the summons.

Sources said while supplying fully built-up buses and trucks, Pasco Motors issues a single invoice but splits the total value into two components: the value of the chassis, which is charged at a GST rate of 28%, and the value of body fabrication, which is charged at a GST rate of 18%.

“As per the law, if a bus body builder constructs and supplies a fully built-up bus, the entire supply should be taxed at flat 28% GST. Therefore, Pasco Motors LLP is evading GST by charging different GST rates for the chassis and body fabrications in a single invoice,” a source said.

GST Intelligence has asked the company to clarify the differential rate of GST billed to customers and provide supporting documents. After queries remained unanswered, the agency sent summons to the company and its partners to record statements and ensure compliance. Generally, summonses are issued after non-compliance and non-cooperation by the other party.