Professional Legal Advice Cannot Constitute Criminal Conspiracy

The Allahabad High Court examined the legality of criminal proceedings initiated against an advocate who had represented a GST assessee in appellate proceedings and advised utilization of Input Tax Credit available in the Electronic Credit Ledger towards the statutory pre-deposit required under Section 107 of the GST Act. 

The Court held that an advocate acting in a professional capacity and pursuing a legal position on behalf of a client cannot be prosecuted merely because the tax authorities disagree with the legal advice tendered. 

Observing that the FIR, charge-sheet and cognizance order violated fundamental principles governing criminal liability, the Court quashed the entire proceedings insofar as they related to the advocate.