2019 (9) TMI 1590 - DSC - GST

Grant of regular bail - fraudulent availment of irregular credit - fake invoices raising without making actual movement of goods - HELD THAT - Prima facie it appears that the accused had floated some firms with the purpose to evade GST. Considering the totality of the facts, the accused does not deserve the concession of bail. Thus, the application filed by the accused for regular bail is hereby dismissed. Application dismissed.

Summary

Issues:
- Application for regular bail in a complaint filed by Directorate General of Goods and Services Tax Intelligence
- Allegations of floating fake firms for fraudulent GST evasion
- Arguments regarding the involvement of the accused and the amount of evasion
- Decision on the bail application

Analysis:
1. The judgment pertains to an application for regular bail filed by the accused, who is in custody since June 26, 2019, in a complaint lodged by the Directorate General of Goods and Services Tax Intelligence. The complaint alleges that the accused floated seven fake firms with the intention of evading GST by circulating fake invoices without actual movement of goods. The Directorate's investigation revealed that the accused used different identities and documents to operate these fake firms for fraudulent purposes.

2. The prosecution presented incriminating evidence obtained during searches conducted at various premises associated with the fake firms and the accused. Statements from individuals connected to the firms implicated the accused as the mastermind behind the scam. The prosecution argued that the accused, as the kingpin of the racket, orchestrated an evasion of over ?16 crores, emphasizing the seriousness of the offense and opposing the grant of bail.

3. The defense, represented by counsel for the accused, contended that the accused was falsely implicated, denying any involvement in the alleged GST evasion scheme. It was argued that the accused's role, if any, was minor, and the evasion amount was below ?5 crores. The defense sought bail on the grounds that the offenses were triable by a Magistrate and the accused had been in custody for a significant period.

4. After considering the arguments from both sides, the Sessions Judge concluded that the accused had prima facie engaged in activities aimed at evading GST by setting up fake firms. Taking into account the gravity of the allegations and the totality of facts presented, the judge determined that the accused did not merit bail. Consequently, the application for regular bail was dismissed, and the case file was directed to be archived following necessary procedures.